Which of These Is Not a Broad Principle of Cash

question 31

Multiple Choice

Which of these is not a broad principle of cash management that helps ensure that a business remains solvent?

• A) Collect cash owing from accounts receivable as quickly as possible.
• B) Pay accounts payable just before the due date rather than when the statement is first received.
• C) Buy all capital equipment on hire purchase.
• D) Invest any cash that is surplus to requirements to earn a return for the business.

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Definitions:

Appropriate Defence

Strategies or actions taken by individuals or groups to protect themselves against criticism, legal actions, or other threats.

Organizing Drive

The process undertaken by trade unions or workers to gain recognition for collective bargaining purposes, typically involving campaigning and gaining support from a workforce.

Union Organizer

An individual responsible for rallying support among workers, forming new unions or strengthening existing ones to negotiate better terms for employees' welfare.

Organizing Campaigns

Entails planning and executing strategies to promote certain goals or initiatives within an organization.