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

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?
C) Conservative
A) Aggressive
B) Moderate
D) Permanent

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

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 123
Topic #: 4
[All CIMAPRA19-F01-1 Questions]

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?

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Suggested Answer: C

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

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Hailey
7 hours ago
I think it's A) Aggressive. They took a loan for bulk buying.
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Glory
5 days ago
Definitely aggressive, but it could pay off if they manage it right.
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Arlette
11 days ago
Wait, a 5-year loan for raw materials? That seems risky!
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Hyman
16 days ago
I’m not so sure, could be moderate too.
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Carisa
2 months ago
Totally agree, they’re taking a big risk.
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Rory
2 months ago
Sounds like an aggressive approach to me!
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Raina
3 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
3 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
3 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
4 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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