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Generally speaking, which of the following situations will occur if a seasonal c

ID: 2654228 • Letter: G

Question

Generally speaking, which of the following situations will occur if a seasonal company adopts a compromise financial policy?

I. periods where short-term financing is required
II less long-term debt than if the firm followed a restrictive financial policy
III. periods of excess funds which can be invested in short-term marketable securities
IV. lower investment in fixed assets than if the firm adopted a flexible financial policy

I only

II only

I and III only

II and IV only

I, III, and IV only

I only

II only

I and III only

II and IV only

I, III, and IV only

Explanation / Answer

correct option is "E" -I III and IV only

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