If a company adheres to a restrictive short-term financial policy, then they will generally have:
A) little, if any, investment in marketable securities.
B) low inventory turnover rates.
C) liberal credit terms for customers.
D) few, if any, stockouts.
E) high cash balances.

Question

Quizplus · Accepted Answer

A restrictive short-term financial policy involves minimizing cash and marketable securities to reduce opportunity costs, hence little investment in marketable securities.

If a Company Adheres to a Restrictive Short-Term Financial Policy