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