One way a company can manage its expenditures is to rely on its creditors to give it time to pay for purchases.

Question

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By relying on creditors to extend payment terms, a company can better manage its cash flow and budget for expenses. This can help reduce the need for immediate cash outflows and provide flexibility in managing expenditures. However, it is important for the company to maintain a good relationship with its creditors and ensure that it is able to meet its payment obligations in a timely manner.

One Way a Company Can Manage Its Expenditures Is to Rely