"Company XYZ is now required to make electronic payments by its suppliers. To prevent an increase in costs, the company should: "

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The question states that Company XYZ must now make electronic payments to its suppliers and asks how to prevent cost increases. The presented option is: A. Negotiate a change in payment timing with its suppliers. This choice can be advantageous because adjusting payment timing can align cash flows more efficiently. If the company negotiates earlier payment terms or longer net terms with suppliers, it can optimize liquidity, reduce the need for costly short-term financing, and potentially secure discounts or lower processing costs tied to electronic payments. By coordinating timing, the company may also minimize peak cash outlays and spread out payments to avoid cash flow crunches, which helps keep overall costs down. In contrast, other potential strategies (not listed) might include consolidating payment channels, leveraging automated reconciliation to reduce manual labor, or renegotiating per-transaction fees with banks or fintech providers; however, since those options aren’t provided here, the single presented strategy focuses on timing. Therefore, this option addresses cost containment by optimizing when payments are made in the new electronic payment framework, reducing unnecessary expenses associated with misaligned cash flow.

33:390:430:90 TREASURY MANAGEMENT Quiz - Chapter 4 - Payment Systems

"Company XYZ is now required to make electronic payments by its suppliers. To prevent an increase in costs, the company should: "

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