A small business has a DPO of 20 days, while the industry average is 45 days. What might this indicate about the business's operations?

• A. The business is not competitive in its industry.
• B. The business is likely to face cash flow issues due to delayed payments.
• C. The business pays its suppliers faster than the industry average, indicating strong liquidity.
• D. The business has poor relationships with its suppliers.

Answer: (C)