Photo AI
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 inte... 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
The correct answer is B: Improved cash flow.
When MME delays payment to suppliers, it can keep cash within the business for a longer period. This helps improve cash flow, allowing MME to invest or use the funds for other operational needs before payment is made. While this may create tension with suppliers, in the short term, it provides a liquidity benefit.