A restrictive short-term financial policy, as compared to a more flexible policy, tends to:I. cause a firm to lose sales due to a lack of inventory on hand.II. increase the sales of a firm due to the firm’s credit availability and terms.III. increase the probability that a firm will face a cash-out situation.IV. increase the ability of a firm to charge premium prices.
Read DetailsWhich of the following statements concerning the effective annual rate are correct?I. When borrowing and choosing which loan to accept, you should select the offer with the highest effective annual rate.II. The more frequently interest is compounded, the higher the effective annual rate.III. A quoted rate of 6% compounded continuously has a higher effective annual rate than if the rate were compounded daily.IV. When making financial decisions, you should compare effective annual rates rather than annual percentage rates.
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