Which One of the Following Actions Is Indicative of a Restrictive

question 90

Multiple Choice

Which one of the following actions is indicative of a restrictive short-term financial policy?

• A)Granting increasing amounts of credit to customers
• B)Expanding the number of inventory items carried
• C)Increasing the firm's investment in the current accounts
• D)Minimizing the cash balances held by the firm
• E)Investing relatively large amounts in marketable securities

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Definitions:

Mergers

The process by which two or more companies combine into a single entity, often to achieve greater market share, efficiency, or competitive advantage.

Real-world Examples

Specific, actual case studies or instances used to illustrate a concept or to demonstrate how theoretical principles operate in practice.

Types

Different categories or varieties of objects, concepts, or entities distinguished by specific attributes or characteristics.

Wheeler-Lea Act

A U.S. law passed in 1938 that amended the Federal Trade Commission Act to prohibit unfair or deceptive acts or practices in commerce.