Which of the Following Is the Best Definition of Zero-Balance

question 329

Multiple Choice

Which of the following is the best definition of zero-balance account?

• A) The costs associated with holding too little cash.
• B) An automated teller machine card used at the point of purchase to avoid the use of cash. As this is not a credit card, money must be available in the user's bank account.
• C) A chequing account in which a zero balance is maintained by transfers of funds from a master account in an amount only large enough to cover cheques presented.
• D) The need to hold cash to satisfy normal disbursement and collection activities associated with a firm's ongoing operations
• E) A firm's desired cash level as determined by the trade-off between carrying costs and shortage costs.

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Definitions:

Jay Conger

A management theorist known for his work on leadership, influence, and negotiation within organizational settings.

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The practice of giving employees the authority, resources, and support they need to achieve results, thereby increasing their sense of control and satisfaction in their work.

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The process of identifying and choosing alternatives based on the values and preferences of the decision maker.

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a form of power that is recognized as lawful and right, often derived from an official position or role within an organization.