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

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Definitions:

Trimester

Divided into three sections; the third segment or period.

Alpha-Fetoprotein (AFP)

Alpha-Fetoprotein is a protein produced by the liver of a fetus, levels of which in maternal blood can indicate certain conditions.

ThinPrep

A method for preparing cytology specimens.

Pap Test

A screening procedure for cervical cancer involving the collection and microscopic examination of cells from the cervix and vagina.