Assume the Following Facts About a Firm

question 33

Multiple Choice

Assume the following facts about a firm:
Would a lock box system that reduces check clearing time from six to three days be justified?

• A)Yes, because it would save more than $1,800 annually.
• B)No, because it would cost $2,100 annually.
• C)Yes, because of the additional convenience of a shorter clearing time.
• D)Indifferent, the cost and expense are about the same.

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Definitions:

Legal Precedent

A legal case that establishes a principle or rule that is followed by other courts in future cases involving similar issues or facts.

Infraction

A violation or infringement of a set of rules or regulations.

Reasoned Decision-Making Model

A systematic approach to making decisions that involves gathering information, evaluating options based on logic and reasoning, and selecting the most appropriate course of action.

Courses of Action

Alternative strategies or paths that can be taken in response to a situation or to achieve a specific goal.