Following the Devastation of Hurricane Hugo, Charleston, South Carolina Was

question 19

Multiple Choice

Following the devastation of Hurricane Hugo, Charleston, South Carolina was cut off from the outside world and without electricity.Prices for bagged ice rose by 1,000 percent and electric generators by 300 percent and at least one tree removal firm charged $4,000 to cut up a tree.City government responded by passing an emergency law prohibiting price "gouging." This law is an example of

• A)the cost disease of services.
• B)a price ceiling.
• C)the laissez-faire rule.
• D)the indispensable necessity syndrome.

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Definitions:

Lockbox System

A service offered by banks to process payments quickly by having those payments mailed directly to a secure post-office box, from which the bank collects and deposits into the company's account.

Cheque Clearing

The process by which banks settle transactions made by cheques, transferring funds from the issuer's account to the payee's account.

Total Collection Time

The total time taken from issuing an invoice to the receipt of payment from customers.

Customer Cheques

Checks issued by customers as a method of payment for goods or services received.