Which of the following is a possible consequence to a business of keeping its trade payables at too high a level? a) A loss of goodwill on the part of suppliers, who may cease to supply goods to the...

Which of the following is a possible consequence to a business of keeping its trade payables at too high a level?

a) A loss of goodwill on the part of suppliers, who may cease to supply goods to the business.

b) The business’s overdraft may increase with a consequent increase in finance costs.

c) Inventory levels will be too high, thus incurring additional holding costs.

d) The operating cycle will increase.