A Firm with a Flexible Short-Term Financial Policy Will

question 46

Multiple Choice

A firm with a flexible short-term financial policy will:

• A) maintain a low balance in accounts receivables.
• B) only have minimal amounts, if any, invested in marketable securities.
• C) invest heavily in inventory.
• D) have low cash balances.
• E) have tight restrictions on granting credit to customers.

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Definitions:

Scoring Rubric

A set of criteria and standards typically used in educational settings to assess the quality of students' work or performance.

Close-Mindedness

The unwillingness to consider or accept different ideas or opinions.

Hostility to Reason

A negative attitude or opposition towards logical argumentation, critical thinking, or the rational resolution of conflicts.

Critical Thinking

A skill of objectively assessing evidence and arguments, to identify biases and assumptions, and make reasoned judgments.