Question
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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