Lockboxes

question 186

Multiple Choice

Lockboxes:

• A) Should be geographically located close to a firm's primary customers.
• B) Should be located in remote locations to increase the net disbursement float.
• C) That are electronic are less efficient than traditional lockboxes.
• D) Tend to be negative net present value projects for firms with a large number of sizeable transactions.
• E) Tend to also be used as concentration accounts.

---

Definitions:

Profit-Maximizing Firm

A business entity's objective of adjusting production and sales to achieve the highest possible profit levels.

Wage Rate

The amount of money a worker is paid per unit of time, such as an hour or a month.

Marginal Cost

The cost related to the production of an additional unit of a product or service.

Price Taker

A seller (or buyer) that is unable to affect the price at which a product or resource sells by changing the amount it sells (or buys).