A restrictive short-term financial policy tends to:
A)reduce future sales more so than a flexible policy.
B)grant credit to more customers.
C)incur more carrying costs than a flexible policy does.
D)encourage credit sales over cash sales.
E)reduce order costs as compared to a more flexible policy.

Question

Quizplus · Accepted Answer

A restrictive short-term financial policy usually involves tighter credit terms, which can make it difficult for customers to purchase products or services. This can lead to a reduction in future sales because customers may turn to competitors who offer more lenient credit terms. A more flexible policy, on the other hand, may attract more customers and lead to increased sales.

A Restrictive Short-Term Financial Policy Tends To