Select the Correct Statement

question 20

Multiple Choice

Select the correct statement.

• A) To remain competitive it is usually best for a firm to take longer to collect money owing by trade debtors.
• B) By lessening control over trade debtors, it may be possible for the firm to make debtors balances available for other purposes.
• C) By exercising tighter control over trade debtors, it may be possible for a firm to release funds for other purposes.
• D) None of the statements is correct.

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Definitions:

Constitutional Law

A body of law which defines the role, powers, and structure of different entities within a state, including the executive, the parliament, and the judiciary.

Discrimination Law

The body of law that prohibits unfair treatment of individuals based on certain protected characteristics such as race, gender, age, and disability.

Apparent Agency

A legal concept where a principal is liable for the acts of an agent who appears to be acting within the scope of authority, irrespective of whether the principal actually granted such authority.

Express Agency

An agency relationship created by explicit instruction or agreement, where the agent is authorized to act on behalf of the principal.