[amp_mcq option1=”higher returns on short-term investments” option2=”less frequent and smaller short-term loans” option3=”lower rates of interest” option4=”All of the above E. None of the above” correct=”option4″]
The correct answer is: D. All of the above
A computerised MIS can help businesses to make better decisions by providing them with accurate and timely information. This can lead to higher returns on short-term investments, as businesses are able to make more informed decisions about where to invest their money. Additionally, a computerised MIS can help businesses to manage their cash flow more effectively, which can lead to less frequent and smaller short-term loans. Finally, a computerised MIS can help businesses to negotiate lower rates of interest on loans, as they are able to present lenders with a more accurate picture of their financial situation.
Here are some additional details about each of the benefits mentioned above:
- Higher returns on short-term investments: A computerised MIS can help businesses to identify opportunities for higher returns on short-term investments. For example, a business may be able to invest in short-term treasury bills or certificates of deposit that offer a higher interest rate than a traditional savings account. Additionally, a business may be able to use a computerised MIS to track the performance of its investments and make adjustments as needed.
- Less frequent and smaller short-term loans: A computerised MIS can help businesses to manage their cash flow more effectively. This can lead to less frequent and smaller short-term loans, as businesses are able to better predict their cash needs. Additionally, a computerised MIS can help businesses to identify ways to reduce their expenses, which can also lead to less need for short-term loans.
- Lower rates of interest on loans: A computerised MIS can help businesses to negotiate lower rates of interest on loans. This is because a computerised MIS can provide lenders with a more accurate picture of a business’s financial situation. Additionally, a computerised MIS can help businesses to track their credit score and make sure that it is in good standing. A good credit score can help businesses to qualify for lower interest rates on loans.