Which of the Following Is the BEST Way for Small

question 91

Multiple Choice

Which of the following is the BEST way for small businesses to speed payments?

• A)Threaten legal action.
• B)Send at least 3 collection letters in quick succession.
• C)Establish a personal relationship with customers.
• D)Offer a repayment plan.

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Definitions:

Average Daily Cost

The average cost incurred by a business or an individual on a daily basis.

Lockbox System

A service provided by banks to process payments by diverting them directly to a special post office box, speeding up the collection process.

Cheques

Cheques are written, dated, and signed instruments that direct a bank to pay a specific sum of money from the cheque writer's account to the person or entity in whose name the cheque has been issued.

Bank Charges

Bank charges are fees imposed by banks for various services, including account maintenance, transactions, overdrafts, and loan management.