Which of the following is a major risk associated with excessive reliance on overdraft?

Type: MCQ • Marks: 1

A. Increased financial cost and liquidity risk

B. Automatic increase in revenue

C. Elimination of liabilities

D. Reduction of financial accountability

Explanation

Overdrafts can carry interest/charges and may indicate inadequate cash-flow management.

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UPSC Principal & Vice Principal Management Finance Administration

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