A Lock-Box Service Will Benefit the Following Firm the Most

question 47

Multiple Choice

A lock-box service will benefit the following firm the most.

• A)Firm has a large number of suppliers
• B)Firm writes a large number of cheques daily
• C)Firm has geographically dispersed customer base
• D)Firm sells goods to a very few customers

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Definitions:

Capitalist Economy

A system of economy where the ownership of capital resources is in the hands of private individuals or companies, decisions regarding investments are privately made, and the determination of prices, output, and distribution of products is largely governed by the dynamics of competition in a free-market environment.

Price Mechanism

is the process by which the forces of supply and demand determine the price of goods and services in a market economy.

Circular Flow Model

An economic model illustrating the movement of goods, services, and money between households and businesses in an economy.

Demand

The desire and ability of consumers to purchase goods or services at given prices, playing a critical role in determining market prices and quantities.