Lockboxes

question 49

Multiple Choice

Lockboxes:

• A) should be geographically located close to primary customers.
• B) should be located in remote locations to increase the net disbursement float.
• C) offer no additional benefit now that the Check Clearing Act for the 21st Century has been enacted.
• D) tend to be negative net present value projects when they involve a large number of sizable transactions.
• E) tend to also be used as concentration accounts.

Comprehend the structural advantages of specific flooring types in semi-trailers.

Distinguish between different coupling and connecting systems in trailers.

Explain the operational technologies used in current refrigerated trailers.

Recognize the standards and regulations affecting trailer design and operation.

---

Definitions:

Conversion Value

The financial worth of a convertible security if it is converted into a different form, usually shares of the company's common stock.

Straight Bond Value

The value of a bond that pays fixed interest payments and does not have any additional features such as convertibility or callable options.

Conversion Value

The worth of a convertible security if it is converted into a different asset, usually common stock, at the current market price.

Convertible Bond

A type of bond that can be converted into a predetermined amount of the issuing company's equity at certain times during the bond's life, usually at the discretion of the bondholder.