A Lockbox Plan Is Most Beneficial to Firms That

question 173

Multiple Choice

A lockbox plan is most beneficial to firms that

• A) Send payables over a wide geographic area.
• B) Have widely disbursed manufacturing facilities.
• C) Have a large marketable securities account to protect.
• D) Hold inventories at many different sites.
• E) Make collections over a wide geographic area.

---

Definitions:

Economic Environment

The combination of external economic factors that impact the operation of businesses, such as inflation, employment rates, and GDP growth.

Bankruptcy Codes

A set of federal laws outlined in the United States that govern bankruptcy proceedings and provide the legal framework for dealing with financial insolvency.

Labor Market Supply

The total pool of individuals available and qualified to work, determined by factors such as demographics, education, and willingness to work at prevailing wage rates.

Theory Y

A management theory which suggests that employees are naturally motivated, enjoy working, and will exhibit self-control and self-direction if they are committed to the objectives of the organization.