Which One of the Following Is Most Indicative of a Flexible

question 16

Multiple Choice

Which one of the following is most indicative of a flexible short-term financial policy?

• A)relatively low level of liquidity
• B)high ratio of current assets to sales
• C)low level of net working capital
• D)high ratio of short-term debt to long-term debt
• E)relatively small investment in current assets

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Definitions:

Nearby Object

An item or thing that is physically close to a point of reference or location.

Gestalt Principle

A theory in psychology that proposes the human brain sees objects as whole forms rather than as a collection of parts.

Proximity

The state of being close to something or someone in distance or relationship.

Organize Stimuli

The process of receiving, categorizing, and interpreting sensory information from the environment.