Two Methods for Improving the Collection Process Are the Use

question 26

True/False

Two methods for improving the collection process are the use of a lockbox system and moving funds by electronic transfer.

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Definitions:

Capital Structure

The particular combination of debt and equity used by a company to finance its overall operations and growth.

Cost Structure

The mix of fixed and variable cost used by a firm.

Financial Leverage

Utilizing borrowed funds to amplify the prospective gains of an investment.

Operating Leverage

The degree to which a company uses fixed operating costs, affecting its earnings before interest and taxes (EBIT) with changes in sales.