Asked by Heather Marie on May 16, 2024

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Restrictive short-term financial policies with regard to current asset management include three basic actions. List and briefly describe each action.

Restrictive Financial Policies

Policies put in place to limit certain actions by the firm, often to maintain financial stability or to comply with regulatory requirements.

Current Asset Management

The practice of overseeing and optimizing the handling of a company's short-term assets, such as cash, inventory, and receivables.

  • Examine the benefits and drawbacks associated with alternative short-term financial policies (flexible vs. restrictive).
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MA
Maureen AugusteMay 19, 2024
Final Answer :
The three actions are: Keep cash low with little invested in marketable securities, keep inventory low, and minimize accounts receivable.