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.

Question

Quizplus · Accepted Answer

The flexible current asset investment strategy is generally considered a low-risk approach because it involves maintaining high levels of current assets to meet any unexpected demands. This contradicts the high-risk and high-return description.

Which of the Following Is NOT True About the Flexible