MrHill,who Runs a Key-Chain Manufacturing Unit,buys Raw Materials from His

question 76

Multiple Choice

Mr.Hill,who runs a key-chain manufacturing unit,buys raw materials from his supplier during the first week of every month.The supplier's policy states that all payments need to be cleared within 50 days of buying the materials.This schedule ensures that Mr.Hill gets an extended period to make payments thus controlling when the payment is made.Which of the following strategies is Mr.Hill using to control cash outflow?

• A) Taking a consignment
• B) Offering trade discount
• C) Gaming the payment process
• D) Timing the purchase

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Definitions:

Pangs of Conscience

Feelings of guilt or moral scruples that may arise from doing something believed to be wrong or failing to do something that was considered right.

Model Behavior

Exhibiting exemplary or desired behaviors that others, especially those looking up to the model, can imitate.

Opposite Sex

Refers to the gender other than one's own, especially in the context of attraction, relationships, or sociobiological discussions.

Cartoon Character

A graphical representation, often in a stylized or exaggerative form, used primarily in animations and comic strips.