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O-LevelCommerceFinance7100/11 · Oct/Nov 2015 · Q391 Mark

Cinnamon Ltd has a shortage of working capital that could make it difficult to pay its employees and suppliers this month. How should Cinnamon Ltd solve this problem?

Aissue shares in Cinnamon Ltd for sale to the public
Breduce its wages and costs
Crefuse to supply more products to its customers on credit
Drequest an increase in its overdraft limit

✓ Correct answer

D: request an increase in its overdraft limit

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About this question

Topic
Finance, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source
O-Level Commerce, Oct/Nov 2015 Paper 1 Variant 1, question 39.

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