A Restrictive Short-Term Financial Policy,as Compared to a More Flexible

question 11

Multiple Choice

A restrictive short-term financial policy,as compared to a more flexible policy,tends to increase

• A)the probability that a firm will face a cash-out situation.
• B)the sales of a firm due to the firm's credit availability and terms.
• C)sales due the large amount of inventory on hand.
• D)accounts receivable.
• E)the ability of a firm to charge premium prices.

---

Definitions:

Contract Employee

An individual hired to perform a specific job or task for a designated period, not considered a permanent or long-term employee of the company.

Salaried Employee

An employee who receives a fixed amount of compensation from an employer regularly, typically on a monthly or bi-weekly basis.

Homemaker

An individual responsible for managing household tasks and caring for the family, without receiving formal wages.

Needle-In-A-Haystack Problem

A metaphor describing the difficulty of finding a specific, often hard-to-locate, item or piece of information among a vast sea of irrelevant data.