Examlex
Which group is incorrectly paired with its description?
Cash Discounts
An incentive offered by sellers to buyers for early payment of invoices, aimed at encouraging prompt payment and improving cash flow.
Short-term Financial Policy
Pertains to strategies and decisions related to managing a company’s current assets and liabilities to ensure liquidity.
Flexible Short-term Policy
A financial strategy that allows for maintaining a higher level of current assets, providing a buffer against unforeseen liabilities or expenses.
Restrictive Short-term Policy
A financial policy aimed at minimizing the amount of working capital to reduce short-term financing costs, often at the risk of running low on liquidity.
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