21
QuizMultiple Choice

Personal Savings and Consumer Credit: Part Three — Test

Question 21 • Advanced Financial Algebra

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

Answer
A
increases the complexity of financial reporting
B
requires renegotiation of payment terms annually
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.

Previous
Next