If a Company Is Experiencing Cash Flow Problems It Can

question 80

Multiple Choice

If a company is experiencing cash flow problems it can alleviate the problem by:

• A)increasing sales...
• B)increasing the amount of capitalization.
• C)increasing the amount of goods sold on credit.
• D)extending customer payment terms..

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Definitions:

Drawee Bank

A bank upon which a check or draft is drawn and is responsible for paying the amount to the individual or entity presenting it for payment.

Agent

A person authorized to act on behalf of another, known as the principal, in business transactions or other matters.

Stop Payment Order

A request made to a financial institution to cancel or halt the processing of a check or payment transaction.

Competitive Equality Banking Act

A U.S. law aimed at promoting competition among banks and equalizing regulatory standards across different types of banking institutions.