A Restrictive Short-Term Financial Policy Tends to

question 67

Multiple Choice

A restrictive short-term financial policy tends to

• A)grant credit to more customers.
• B)reduce total ordering costs as compared to a more flexible policy.
• C)encourage credit sales over cash sales.
• D)incur more carrying costs than a flexible policy does.
• E)reduce future sales more so than a flexible policy.

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Definitions:

Cease And Desist

A legal order or demand to halt alleged illegal activities.

Supreme Court

The highest judicial court in a country or state, often having the final authority in legal disputes and constitutional matters.

Insiders

Insiders are individuals within a company or organization that have access to confidential information, often affecting their ability to trade company stocks.

Corporate Information

Data or knowledge concerning the operations, policies, and management of a corporation, often considered proprietary or confidential.