Which of the Following Statements Is Most Correct

question 3

Multiple Choice

Which of the following statements is most correct?

• A) Poor synchronization of cash flows which results in high cash management costs can be partially offset by increasing disbursement float and decreasing collections float.
• B) The size of a firm's net float is primarily a function of its natural cash flow synchronization and how it clears its checks.
• C) Lockbox systems are used mainly for security purposes as well as to decrease the firm's net float.
• D) If a firm can speed up its collections and slow down its disbursements, it will be able to reduce its net float.
• E) A firm practicing good cash management and making use of positive net float will bring its check book balance as close to zero as possible, but must never generate a negative book balance.

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Definitions:

Rawls

A philosopher known for his theory of justice which argues for the creation of a society where the least advantaged are as well off as possible.

Principles of Social Justice

Foundational guidelines aimed at ensuring equitable treatment, opportunities, and outcomes for all members of society, often addressing issues of inequality and discrimination.

Rawls

A reference to John Rawls, an influential American political philosopher known for his theories of justice and “the original position” in social contract theory.

Assigning Rights

The process of determining and allocating particular legal or moral entitlements or responsibilities to individuals or entities.