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

Question

Quizplus · Accepted Answer

Operating in a fashion that requires maximum cash can be detrimental to the financial health of the business. The other strategies listed (A, B, and D) are all valid cash management techniques that balance the needs of the business with the goal of maximizing cash flow.

The Basic Strategies That Should Be Employed by the Business