A Flexible Short-Term Financial Policy Will Tend to Have More

question 42

Multiple Choice

A flexible short-term financial policy will tend to have more of which of the following than a restrictive short-term financial policy will?
I.Uncollectable accounts receivable
II.Work stoppages for lack of raw materials
III.Carrying costs
IV.Obsolete or out-of-date inventory

• A)I and II only
• B)III and IV only
• C)II and III only
• D)I, II, and III only
• E)I, III, and IV only

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Definitions:

Ethical Altruism

The thesis that people ought to act in the interests of others.

Psychological Egoism

The theory that suggests all human actions are motivated by self-interest, even in what seem to be acts of altruism.

Bentham's Quantitative Model

A philosophical model proposed by Jeremy Bentham, emphasizing the calculation of pleasure and pain to determine the moral rightness of actions based on their utility.

Utility Principle

A principle in ethics and economics that suggests the best action is the one that maximizes utility, often defined as maximizing happiness and minimizing suffering.