Fin 201 corporate finance
What is meant by Relaxed Strategy?
Requirements: 150-200
Answer preview
A relaxed strategy is used by companies to refer to the levels of investments in current assets and can be used in attaining the company’s targeted sales. The strategy involves estimating the current assets to achieve the targeted revenue. It is usually prepared by considering certain events such as fluctuations in sales or a change in the level of activities. It allows sufficient cushion for fluctuation in funds and any unforeseen circumstances to avoid any possible risks. Companies that have a relaxed strategy have an advantage as they assume low risk
201 words
