A Firm Finds That Its Customer Base Is Growing in Geographical

question 25

Multiple Choice

A firm finds that its customer base is growing in geographical terms and needs to reduce its float by obtaining cheques from receiving locations near the customers, rather than having them send their cheques directly to the firm's main office. This setup is called (a) :

• A) Lockbox arrangement.
• B) Wire transfer arrangement.
• C) Cash concentration.
• D) Overnight mail.
• E) Compensating balance.

---

Definitions:

Self-fulfilling Prophecies

Expectations about a subject that cause the subject to act in ways that confirm the expectations.

Adult Personality

The culmination of personality development over an individual's lifetime, showcasing stable psychological traits.

Unity of Direction

A principle that all members of an organization should work towards the same objectives in a coordinated manner.

Inventory Modelling

The mathematical method or system used to manage and optimize stock levels, costs, and supply chain operations.