Sunday, December 30, 2018

Finance Chapter 18 - Short Term Finance Policies


Short Term Financial Policies

Key question: how much to invest in CURRENT ASSETS

Flexible policy actions include:
Keeping large cash and securities balances
Keeping large amounts of inventory
Granting liberal credit terms

Restrictive policy actions include:
Keeping low cash and securities balances
Keeping small amounts of inventory
Allowing few or no credit sales

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