Which of the Following Factors Tends to Reduce or Eliminate

question 19

Multiple Choice

Which of the following factors tends to reduce or eliminate the use of float?

• A) lenient credit policies.
• B) large cash balances.
• C) electronic funds transfers.
• D) high interest rates.

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Definitions:

Mutual Assent

An agreement between parties that is reached after each party has a clear understanding of the terms and decides to enter the agreement.

Valid Offer

A proposal made by one party to another intending to create a legally binding agreement, subject to acceptance.

Accepted Properly

Refers to the act of formally agreeing to the terms of an offer or contract in a manner that meets all legal requirements.

Voidable

Describes a contract or agreement that may be nullified or cancelled by one of the parties involved.