Which One of the Following Is NOT True About the Flexible

question 15

Multiple Choice

Which one of the following is NOT true about the flexible current asset investment strategy?

• A) The strategy promotes a liberal trade credit policy for customers.
• B) The flexible strategy calls for management to invest large amounts in cash, marketable securities, and inventory.
• C) The flexible strategy is perceived to be a high-risk and high-return course of action for management to follow.
• D) The strategy's downside is the high inventory carrying cost.

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Definitions:

Customers' Needs

Refers to the requirements and desires of consumers that a company aims to fulfill with its products or services.

Buying Center

A group of individuals within an organization who are responsible for making purchase decisions, often involving members from different departments to ensure diverse perspectives.

Purchase Decision

The cognitive process leading a consumer to select a product or service among alternatives, based on various factors including need, desire, and affordability.

Consumer Decision-making

The process by which consumers identify their needs, gather information, evaluate alternatives, and make the purchase decision; a crucial aspect of marketing and sales strategies.