Multiple choice

How can a business improve its working capital management?

  1. by increasing cost centres

  2. by reducing variable costs

  3. by leasing rather than buying assets

  4. by extending credit terms to 60 days
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Leasing assets instead of buying them preserves cash and improves working capital, as it avoids large immediate cash outflows for capital expenditures.

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