Flexible Short-Term fiNancial Policies Tend To

question 51

Multiple Choice

Flexible short-term financial policies tend to:

• A)maintain low trade receivables balances.
• B)support few investments in marketable securities.
• C)minimize the investment in inventory.
• D)maintain large cash balances.
• E)tightly restrict credit sales.

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Definitions:

Preference Provision

A clause in a contract or agreement that gives a party a special right or privilege, often related to financial matters like dividends or bankruptcy claims.

Article 9

Refers to a portion of the Uniform Commercial Code (UCC) that governs secured transactions in personal property.

Business

The organized efforts and activities of individuals to produce and sell goods and services for profit.

Consumer Goods

Items purchased for personal, family, or household use and enjoyment.