Which of the Following Is NOT True About the Flexible

question 36

Multiple Choice

Which 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 strategy calls for management to invest large amounts in cash, short-term investments, and inventory.
• C) The strategy is perceived 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.