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Which one of the following would be a benefit for MME if it delayed paying its suppliers? Select one answer - Edexcel - GCSE Business - Question 7 - 2018 - Paper 1
Question 7
Which one of the following would be a benefit for MME if it delayed paying its suppliers? Select one answer. A. Increased profit B. Improved cash flow C. Reduced... show full transcript
Worked Solution & Example Answer:Which one of the following would be a benefit for MME if it delayed paying its suppliers? Select one answer - Edexcel - GCSE Business - Question 7 - 2018 - Paper 1
Step 1
Select one answer.
Answer
Among the options provided, delaying payment to suppliers would primarily result in improved cash flow. By retaining cash for a longer period, MME can enhance its liquidity, allowing for better operational flexibility and potentially addressing immediate financial needs. However, it is essential to consider that this practice may also lead to strained relationships with suppliers if not managed carefully.