A general contractor is experiencing cash flow problems due to slow payments from clients. Which strategy would be most effective for improving short-term cash flow?
Correct Answer
A) Negotiating longer payment terms with suppliers
Negotiating longer payment terms with suppliers allows the contractor to delay cash outflows while waiting for client payments, improving short-term cash flow.
Why This Is the Correct Answer
Negotiating longer payment terms with suppliers allows the contractor to delay cash outflows while waiting for client payments, improving short-term cash flow.
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