Banking · Working Capital Management
Which of the following changes would effectively shorten the operating working capital cycle for a business?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Increasing the credit period offered to customers
- 2Reducing the inventory holding time✓
- 3Shortening the payment terms to suppliers
- 4Delaying the regular salary payments
Correct answer
Reducing the inventory holding time
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