Which of the Following Statements Related to the BAT Model

question 64

Multiple Choice

Which of the following statements related to the BAT model is correct?
I.The BAT model is used to determine the target cash balance for a firm.
II.The BAT model is rarely used in business due to its complex nature.
III.The BAT model is a model that helps eliminate a firm's collection float.
IV.One disadvantage of the BAT model is the fact that it assumes all cash outflows are known with certainty.

• A)I and II only
• B)III and IV only
• C)II and III only
• D)I and III only
• E)I and IV only

---

Definitions:

Occupation

A person's job or profession, often used to describe their main source of income or area of expertise.

Income

Money received, especially on a regular basis, for work or through investments.

Age

The length of time that a person or object has existed, often measured in years.

Persuasive Message

Communication designed to influence the attitudes, beliefs, or behaviors of the recipient through reasoning or emotional appeal.