Question

with respect to purchasing, one way a company can manage their cash more efficiently is to ________.

○ always pay with cash

○ dispose of unused inventory

○ purchase on credit

○ utilize check kiting

Explanation:

To manage cash efficiently in purchasing, "purchase on credit" allows the company to hold onto cash temporarily (using credit terms to pay later), which is a standard cash management strategy. "Always pay with cash" ties up cash immediately, "dispose of unused inventory" is about inventory management (not direct purchasing - cash management), and "utilize check kiting" is illegal. So the correct option is the one about purchasing on credit.

Answer:

C. purchase on credit (assuming the options are labeled A: always pay with cash, B: dispose of unused inventory, C: purchase on credit, D: utilize check kiting; adjust label if needed based on actual numbering, but the correct choice is "purchase on credit")