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

question 47

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.

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Definitions:

Cherry Industry

A sector of agriculture that focuses on the cultivation, harvest, and distribution of cherries.

Efficiently Allocated

A situation where resources are distributed in a manner that maximizes the overall benefit to society or an economy, with no way to improve anyone's condition without worsening someone else's.

Marginal Cost

The amount spent on producing one more unit of a good or service.

Average Total Cost

The per unit cost of production, calculated by dividing the total cost by the quantity of output produced.