A Flexible Short-Term Financial Policy

question 74

Multiple Choice

A flexible short-term financial policy:

• A)increases a firm's need for long-term financing.
• B)minimizes net working capital.
• C)avoids bad debts by only selling items for cash.
• D)maximizes fixed assets and minimizes current assets.
• E)is most appropriate for a firm with relatively high carrying costs and relatively low shortage costs.

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Definitions:

Mnemonics

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Clark Kerr

An influential American educator and economist known for his work as the 12th President of the University of California system, where he contributed significantly to the expansion of higher education.

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Liberal Democrat

A member or supporter of a political ideology that blends liberal social policies with democratic principles, often emphasizing individual rights and equality.