A restrictive current asset management strategy is a high-risk, high-return alternative to a flexible strategy because of
A) financial shortage costs.
B) production shortage costs.
C) human resources shortage costs.
D) None of the above

Question

Quizplus · Accepted Answer

A restrictive current asset management strategy involves keeping low levels of current assets, which can lead to financial shortage costs if unexpected expenses or investments arise. This high-risk approach can also lead to high returns if the company's investments are successful, but it is not recommended for all businesses. Production and human resources shortage costs are not directly related to current asset management strategies.

A Restrictive Current Asset Management Strategy Is a High-Risk, High-Return