Examlex
What is the relation between the following pair of compounds?
Zero-Balance Account
A chequing account in which a zero balance is maintained by transfers of funds from a master account in an amount only large enough to cover cheques presented.
Cash Safety Stock
The minimum amount of cash that a company needs to keep on hand to protect against unforeseen variability in cash flow.
Safety Stock
Extra inventory held by a company to prevent stockouts caused by unforeseen variations in supply and demand.
Collection Time
The time duration that a business takes to recover the payments owed to it by its clients, often measured from the date of sale or service delivery.
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