With a Flexible Policy with Regard to Short Term Financing

question 98

Multiple Choice

With a flexible policy with regard to short term financing, over a year a firm will have:

• A)some short-term borrowing.
• B)some funds to invest in marketable equity securities.
• C)full coverage of permanent current assets.
• D)Both A and B are correct.
• E)A, B and C are correct.