CIMAPRA19-F01-1 Exam - Topic 4 Question 123 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 123
Topic #: 4

MN recently took out a 5 year term loan to buy raw materials to take advantage of a supplier's bulk discount that had been offered to them.

What approach to financing working capital has MN undertaken?

AAggressive

BModerate

CConservative

DPermanent

Show Suggested Answer

Suggested Answer: C

by Fernanda at Apr 02, 2026, 04:03 AM

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Carisa

22 days ago

Totally agree, they’re taking a big risk.

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Rory

27 days ago

Sounds like an aggressive approach to me!

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Raina

2 months ago

I feel like this could also be seen as a conservative approach since they are securing resources for the long term, but I need to double-check the definitions.

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Mona

2 months ago

I’m leaning towards the aggressive option because they’re using debt to capitalize on a discount, but I could be mixing it up with another example we studied.

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Shakira

2 months ago

This seems like a moderate approach to financing working capital, but I remember a practice question that had a similar scenario and it was classified differently.

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Jamal

2 months ago

I think MN's approach might be aggressive since they took a loan for raw materials, but I'm not entirely sure.

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