Generally Speaking,which of the Following Situations Will Occur If a Seasonal

question 30

Multiple Choice

Generally speaking,which of the following situations will occur if a seasonal company adopts a compromise financial policy?
I.periods where short-term financing is required
II less long-term debt than if the firm followed a restrictive financial policy
III.periods of excess funds which can be invested in short-term marketable securities
IV.lower investment in fixed assets than if the firm adopted a flexible financial policy

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

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