Which of These Is Most Likely the Fastest Method of Collecting

question 35

Multiple Choice

Which of these is most likely the fastest method of collecting cash?

• A)Requiring customers to submit all payments to a lockbox
• B)Requiring customers to submit all payments to the home office
• C)Initiating a financial electronic data interchange at the time of sale
• D)Offering customers credit terms of 1/5, net 15
• E)Eliminating all disbursement float

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Definitions:

Adverse Selection

A situation in economics and insurance where a party makes a decision based on information not available to the other party, leading to an imbalanced or unfair agreement.

Salaried Salesman

A sales professional who is compensated with a fixed salary rather than or in addition to commissions based on sales volume.

Monitoring

The process of systematically observing, checking, and recording activities or data to ensure desired outcomes are being met.

Shirking

The behavior of avoiding work or responsibilities, often surreptitiously.