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:

Conformity

The adjustment of one's behaviors, attitudes, or beliefs to align with the norms, attitudes, or behaviors of a group or society.

Socioeconomic Status

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.

Fundamental Attribution Error

The tendency to overestimate the influence of internal factors in determining behavior while underestimating situational factors.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.