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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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