Question

Financial slack:

a. is associated with high leverage
b. allows firms to take advantage of good investment opportunities
c. solves any agency costs when managers want to empire-build
d. is a term that describes a lazy CFO

Answer 1

B

Step-by-step explanation:

Financial slack is when a firm has unused capacity as a result of debt that is yet to be utilized. It allows firms to take advantage of good investment opportunities

financial slack is usually in the form of unused cash