Collections Float Offsets Disbursement Float

question 104

True/False

Collections float offsets disbursement float. If a firm's collections float is greater than its disbursement float then a firm is said to operate with positive net float.

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Definitions:

Monopolistically Competitive Industry

A market structure where many firms sell products that are similar but not identical, allowing for competition based on factors other than just price.

Monopolistic Competitor

A firm in a market structure where many companies sell products or services that are similar but not identical, allowing for significant differentiation and competition.

Barriers to Entry

Factors that prevent or hinder potential competitors from entering a market or industry sector.

Close Substitutes

Products or services that can serve almost the same purpose or fulfill the same need, allowing consumers to switch easily between them.