When Managers Are Continually Short-Term Lenders,they Are Said to Follow

question 28

Multiple Choice

When managers are continually short-term lenders,they are said to follow a:

• A) middle-of-the-road financing strategy.
• B) restrictive financing strategy.
• C) relaxed financing strategy.
• D) permanent working-capital strategy.

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Definitions:

Groupthink

A psychological phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Preventing Groupthink

Strategies or methods employed to ensure that decision-making within a group is based on critical thinking and not on the desire for harmony or conformity.

Meritocracy

A system or society in which people are selected, rewarded, and advanced in accordance with their talents, abilities, and efforts rather than their social status or background.

Group Cohesion

The bonding together of members of a group, resulting in a strong sense of collective identity, loyalty, and togetherness.