Which one of the following statements is correct? A firm with a restrictive fina
ID: 2725807 • Letter: W
Question
Which one of the following statements is correct?
A firm with a restrictive financing policy frequently invests in marketable securities.
A firm with a flexible financing policy tends to use short-term financing on a frequent basis.
Firms tend to avoid short-term financing under both restrictive and flexible financing policies.
A firm with a flexible financing policy secures sufficient long-term financing to fund all its assets.
a.A firm with a restrictive financing policy frequently invests in marketable securities.
b.A firm with a flexible financing policy tends to use short-term financing on a frequent basis.
c.Firms tend to avoid short-term financing under both restrictive and flexible financing policies.
d.A firm with a flexible financing policy secures sufficient long-term financing to fund all its assets.
Explanation / Answer
All the statements are wrong
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