A Restrictive Short-Term Financial Policy Tends To

question 389

Multiple Choice

A restrictive short-term financial policy tends to:

• A) Reduce future sales more so than a flexible policy.
• B) Grant credit to more customers.
• C) Incur more carrying costs than a flexible policy does.
• D) Encourage credit sales over cash sales.
• E) Reduce order costs as compared to a more flexible policy.

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Definitions:

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