A company:
A) with a restrictive financing policy secures sufficient long-term financing to fund all its assets.
B) with a flexible financing policy frequently invests in marketable securities.
C) with a flexible financing policy tends to use short-term financing on an ongoing basis.
D) will tend to avoid short-term financing under both restrictive and flexible financing policies.
E) with seasonal sales must select flexible financing policies.

Question

Quizplus · Accepted Answer

A company with a flexible financing policy often maintains a higher level of liquidity, which includes investing in marketable securities to ensure they have funds available when needed.

A Company