A Company Wishes to Reduce the Amount of Working Capital

question 28

Multiple Choice

A company wishes to reduce the amount of working capital it requires to finance its operations. Which of the following would be the least effective way of reducing working capital requirements?

• A)Increase the efforts to collect overdue debtor's accounts.
• B)Refuse to sell on credit to any customer.
• C)Offer a discount for early payment by debtors.
• D)Increase the payment time for accounts payable.

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