Question

Which of the following strategies is used by a business to decrease cash outflows?

A. Refusing the trade discounts offered by suppliers
B. Taking on noncore paying projects
C. Trading goods and services using only money
D. Avoiding the wastage of resources

Answer 1

The correct strategy used by a business to decrease cash outflows is avoiding the wastage of resources.

Step-by-step explanation:

The correct strategy used by a business to decrease cash outflows is option D: Avoiding the wastage of resources.

By avoiding the wastage of resources, a business can reduce unnecessary expenses and conserve cash. This can be achieved through efficient use of resources, implementing cost-saving measures, and minimizing waste.

For example, a business can adopt practices such as recycling, energy conservation, and careful inventory management to avoid wastage and reduce cash outflows.