Which One of the Following Statements Is Correct

question 84

Multiple Choice

Which one of the following statements is correct?

• A)A firm with a restrictive financing policy secures sufficient long-term financing to fund all its assets.
• B)A firm with a flexible financing policy frequently invests in marketable securities.
• C)A firm with a flexible financing policy tends to use short-term financing on a frequent basis.
• D)Firms tend to avoid short-term financing under both restrictive and flexible financing policies.
• E)Firms with seasonal sales select flexible financing policies.

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Definitions:

Chain-Smokes

The habit of smoking cigarettes successively, lighting each one from the stub of the last.

Fixation

In psychology, a persistent focus on an idea, emotion, or object, potentially hindering emotional development.

Psychosexual Stage

A concept in Freudian psychology that refers to different stages of child development, each characterized by a different focus of libido (sexual energy).

Free Association

A method used in psychoanalysis where the patient freely expresses their thoughts without any self-censorship, aimed at uncovering unconscious thoughts.