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

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Definitions:

Calculus-Based Trust

Trust that is based on the calculation of benefits and detriments associated with trusting someone, often grounded in past exchanges and experiences.

Trustor

An individual or entity that places confidence or trust in another, often within the context of a relationship or transaction.

Sustaining Trust

Maintaining confidence and reliability in relationships or systems over time.

Transactional Negotiation

involves a bargaining process primarily focused on the exchange of goods, services, or terms where the relationship between parties is secondary to the deal itself.