Q
Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?
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A
A. To maintain a high ratio of current assets to sales
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B
B. To maintain a low ratio of current assets to sales
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C
C. To less short-term debt and more long-term debt
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D
D. To more short-term debt and less long-term debt
Correct Answer:
B. B. To maintain a low ratio of current assets to sales