The basic strategies that should be employed by the business firm in managing cash include all of the following EXCEPT
A) collecting accounts receivable as quickly as possible without damaging customer rapport.
B) turning over inventory as quickly as possible, avoiding stockouts.
C) operating in a fashion that requires maximum cash.
D) paying accounts payable as late as possible without damaging the firm's credit rating.

Question

Quizplus · Accepted Answer

Operating in a fashion that requires maximum cash would not be a strategy employed by a business firm in managing cash. Rather, the goal would be to manage cash flow in a way that balances the need for cash with the need to cover expenses and invest in growth opportunities. The other strategies listed (A, B, and D) are all commonly employed by businesses to optimize their cash flow.

The Basic Strategies That Should Be Employed by the Business