A Firm Tries to Extend Its Disbursement Float in Order

question 68

Multiple Choice

A firm tries to extend its disbursement float in order to reduce its working capital needs. Which of the following is a risk that may be associated with this strategy, if it is taken too far?

• A) may attract a late fee
• B) may be required to pay before delivery for future supplies
• C) may jeopardize the entire relationship with the supplier
• D) all of the above

---

Definitions:

Fear Of Darkness

A common anxiety disorder characterized by an irrational and excessive fear of the dark, officially known as nyctophobia.

Early Childhood

A crucial developmental period in a human's life, typically considered to cover the preschool years up to age eight.

Posttraumatic Stress Disorder

A condition affecting mental health, provoked by direct experience or seeing a frightening event, noted for its flashback episodes, bad dreams, and significant anxiety levels.

Distressing Dreams

Dreams that cause feelings of fear, sadness, or anxiety in the dreamer.