Which of the Following Is the Best Definition of Transaction

question 172

Multiple Choice

Which of the following is the best definition of transaction motive?

• 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:

Power Distance

A cultural dimension that reflects the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.

Charisma

A personal quality that enables an individual to attract, inspire, and influence others through their presence and communication style.

Ethics

The philosophical study of morality.

Normative Theory

A framework that describes how things should be or how societal norms and standards guide individual actions and institutional practices.