Which of the Following Statements Concerning Remote Disbursement and Controlled

question 351

Multiple Choice

Which of the following statements concerning remote disbursement and controlled disbursement is correct?

• A) These two terms mean the same thing--just like working capital means the same thing as current assets
• B) Remote disbursement is viewed as an ethical disbursement procedure, whereas controlled disbursement is often viewed as an unethical disbursement procedure
• C) Both remote and controlled disbursement are generally perceived as unethical practices and, therefore, their use is in decline
• D) Remote disbursement is often viewed as an unethical disbursement procedure, whereas controlled disbursement is not viewed in such a negative light

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Definitions:

Intermediaries

Entities or people who act as a middleman or agent between two parties in a financial transaction or negotiation.

Financial Intermediary

An institution that acts as a middleman between savers and borrowers, such as a bank or investment firm.

Fund Manager

An individual responsible for making investment decisions for a portfolio of securities, implementing investment strategies for a mutual fund or institutional investor.

Shareholders

Individuals or entities that own shares in a corporation and therefore have an ownership interest in the company.