A Scale Should Have All of the Following Properties, EXCEPT

question 24

Multiple Choice

A scale should have all of the following properties, EXCEPT:

• A)scale items should be intelligible.
• B)there should be a balance of positive and negative descriptors.
• C)scale should be reliable and internally consistent.
• D)scale items should not have discriminatory power.
• E)scales should include a neutral response choice where appropriate.

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Definitions:

Collection Float

The time period between when a check is deposited in a bank and when the funds are available, impacting the company's cash flow.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, where payments are sent to a special post office box rather than to the company.

Treasury Bills

Short-term government securities issued at a discount from their face value, with maturities ranging from a few days to 52 weeks.

Collection Time

The average duration it takes for a company to collect payments owed by its customers, often measured in days.