Disbursement ﬂoat is sometimes used by ﬁrms to fund short-term investments even though such
use is ethically questionable.

Question

Quizplus · Accepted Answer

Disbursement float refers to the time period between the payment of funds by a company and their actual transfer from a financial institution. This can be used by firms to temporarily invest the funds and earn a return before they are actually paid out. While this may be a common practice, it is ethically questionable as it involves using funds that are not yet technically owned by the company for personal gain.

Disbursement ﬂOat Is Sometimes Used by ﬁRms to Fund Short-Term