Under the Leaky Bucket Principle a Policy Should Be Adopted

question 9

Multiple Choice

Under the leaky bucket principle a policy should be adopted

• A)if the benefits received are greater than the 'leaks'
• B)only if there are no leaks for the given policy
• C)if the least well off person is made better off
• D)if the amount of leak is acceptable under a given ethical theory.

---

Definitions:

Payments Quickly

Payments quickly refers to the process of settling financial transactions or obligations in a brief period of time, enhancing liquidity and cash flow management.

Average Collection Period

The average number of days it takes for a company to receive payments from its credit customers.

Receivables Turnover

A financial metric measuring how efficiently a company collects its receivables or the speed at which it turns credits into cash.

Current Ratio

An assessment ratio that evaluates how well a company can meet its obligations due within the next year, by dividing its current assets by its current liabilities.