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Following a restricted financial policy implies holding low levels of current assets relative to sales. Which of the following companies would benefit MOST from following

Following a restricted financial policy implies holding low levels of current assets relative to sales. Which of the following companies would benefit MOST from following a restricted policy?

Multiple Choice

a It is never optimal for a firm to follow a restricted financing policy.

b A firm that makes travel size dental floss whose only customer is WalMart. Thus, they have low shortage costs but high carrying costs.

c A firm that makes travel size dental floss whose only customer is WalMart. Thus, they have low carrying costs but high shortage costs.

d A firm that makes specialized bulldozers. Thus, they have low shortage costs but high carrying costs.

e A firm that makes specialized bulldozers. Thus, they have low carrying costs but high shortage costs.

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