A Restrictive Short-Term Financial Policy,as Compared to a More Flexible

question 26

Multiple Choice

A restrictive short-term financial policy,as compared to a more flexible policy,tends to: I. cause a firm to lose sales due to a lack of inventory on hand.
II) increase the sales of a firm due to the firm's credit availability and terms.
III) increase the probability that a firm will face a cash-out situation.
IV) increase the ability of a firm to charge premium prices.

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

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Definitions:

Power-oriented Characteristics

Traits or behaviors displayed by individuals that focus on gaining or maintaining influence or control over others.

David McClelland

A psychologist known for his work on motivation theory, specifically related to the needs for achievement, power, and affiliation.

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A concept in social psychology and ethics that concerns the fair allocation of resources among members of a community, focusing on outcomes that are perceived as equitable and just.

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Pertaining to or dealing with morals or the principles of morality; concerning right and wrong behavior.