2
QuizMultiple Choice

Credits and Types of Loans — Test

Question 2 • Financial Algebra/Mathematics

How might paying with cash benefit Antonio’s business in terms of financial flexibility?

Answer
A
requires renegotiation of payment terms annually
B
increases the complexity of financial reporting
C
frees up monthly cash flow by avoiding loan payments
D
complicates the monthly budget due to high upfront costs

Explanation

Paying with cash avoids taking out a loan, so Antonio’s business won’t have regular loan payments to make each month. That leaves more monthly cash available for other expenses or opportunities. The correct choice is “frees up monthly cash flow by avoiding loan payments.”

AI-written and checked against the verified answer.

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