A Flexible Short-Term Financial Policy

question 27

Multiple Choice

A flexible short-term financial policy:

• A) increases the need for long-term financing.
• B) minimizes net working capital.
• C) avoids bad debts by only selling items for cash.
• D) maximizes fixed assets and minimizes current assets.
• E) is most appropriate when carrying costs are high and shortage costs are low.

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Definitions:

Gate-Keeping Role

The function of controlling, limiting, or facilitating the flow of information in an organization or social system.

Task-Oriented

A focus on performing tasks and achieving specific outcomes, often emphasizing productivity and efficiency.

Self-Management

Involves controlling one’s behavior, emotions, and thoughts in the pursuit of long-term goals.

Maintenance-Related

Pertaining to tasks, activities, or actions aimed at keeping things in a state of functioning or efficiency.