A Flexible Short-Term Financial Policy

question 70

Multiple Choice

A flexible short-term financial policy

• A)is associated with firms where the carrying costs are considered to be less than the shortage costs.
• B)applies mostly to firms that factor their accounts receivable.
• C)applies only to firms that strictly limit their credit sales.
• D)tends to decrease the amount of current assets held by a firm.
• E)is designed to utilize short-term external financing to fund seasonal increases in current assets.

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