If a Company Does Not Have Enough Cash to Pay

question 97

True/False

If a company does not have enough cash to pay out regular dividends, but still wishes to give the shareholders something that they would consider of value, the company should consider doing a stock split.

Understand the role and mechanism of preauthorized payments and their impact on collection time.

Grasp the workings and benefits of a lockbox system in improving cash management.

Recognize the importance of electronic billing and payment systems in enhancing cash flow.

Understand the objectives of cash management and the strategies for effective cash handling and investment.

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Definitions:

Sensory Fatigue

The reduced sensitivity of the senses after prolonged exposure to certain stimuli.

Subliminal Perception

The process by which stimuli presented below the threshold of conscious awareness influence thoughts, feelings, or actions.

Longest Wavelengths

Refers to the type of electromagnetic waves with the greatest distance between successive crests, typically found in radio waves.

Red Colors

Hue on the visible light spectrum that is associated with warmth, danger, and excitement, often eliciting strong emotions.