An operation manager proposed in an internal meeting that Clear Berhad should slow its rate of payments on accounts payable to increase its funds, which will be used for business operations. It is contended that this procedure will enable the company to expand inventory, which in turn will enable boosting of the company's sales. Required: Discuss whether you agree with the suggestion made.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Exercise 6.3: Clear Berhad
An operation manager proposed in an internal meeting that Clear
Berhad should slow its rate of payments on accounts payable to
increase its funds, which will be used for business operations. It is
contended that this procedure will enable the company to expand
inventory, which in turn will enable boosting of the company's sales.
Required:
Discuss whether you agree with the suggestion made.
Transcribed Image Text:Exercise 6.3: Clear Berhad An operation manager proposed in an internal meeting that Clear Berhad should slow its rate of payments on accounts payable to increase its funds, which will be used for business operations. It is contended that this procedure will enable the company to expand inventory, which in turn will enable boosting of the company's sales. Required: Discuss whether you agree with the suggestion made.
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