25. If a company needs to find money, which of the following methods could it use?

(i) Sell unused non-current assets
(ii) Sale and lease-back of a non-current asset
(iii) Lease a new asset instead of buying it
(iv) Outsource activities such as cleaning, payroll and accounting
(v) Reduce or stop paying dividends
(vi) Ask debtors to pay sooner
(vii) Pay creditors later
(viii) Take out or extend a bank overdraft

A. None of them

B. (i) – (iv) only

C. (v) – (viii) only

D. All of them

Answer : D

All of them are legitimate methods to raise cash. Many of them are “one off” transactions, and all need careful consideration before being undertaken..