Question
Which one of these statements is correct? - A firm might be able to charge higher prices if it switches from a flexible to a
Which one of these statements is correct?
- A firm might be able to charge higher prices if it switches from a flexible to a restrictive short-term financial policy.
- If a firm adopts a restrictive short-term financial policy, its current assets will be greater than if it adopts a flexible policy.
- Future cash flows are expected to be higher if a firm adopts a flexible, rather than a restrictive, short-term financial policy.
- If a firm switches from a flexible short-term financial policy to a restrictive policy, it is likely to see an increase in its uncollectible accounts receivable.
- If a firm switches from a restrictive short-term financial policy to a flexible policy, its operating cycle will most likely decrease.
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