A Firm That Adopts a Flexible Short-Term Financial Policy Is

question 46

Multiple Choice

A firm that adopts a flexible short-term financial policy is more apt to have:

• A)lower carrying costs than shortage costs.
• B)lower shortage costs than carrying costs.
• C)stricter limits on credit sales than the average firm.
• D)a relatively low level of current assets.
• E)greater short-term financing needs than if the firm adopted a restrictive policy.

---

Definitions:

Industrialized Societies

Societies characterized by a high level of industrial development, with significant reliance on manufacturing and technology for economic and social organization.

Unmarried Couple Households

Living arrangements where two partners live together without being legally married.

Perspectives

Different ways of viewing or approaching an issue or concept, influenced by individual experiences, knowledge, and backgrounds.

Deteriorating

The process of becoming progressively worse, often used to describe declines in physical objects, health conditions, or environmental quality.