A Firm That Adopts a Flexible Short-Term Financial Policy Is

Multiple Choice

A firm that adopts a flexible short-term financial policy is more apt to have:

A) lower carrying costs than shortage costs.
B) lower shortage costs than carrying costs.
C) stricter limits on credit sales than the average firm.
D) a relatively low level of current assets.
E) greater short-term financing needs than if the firm adopted a restrictive policy.