A lock-box service will benefit the following firm the most.

Question

Quizplus · Accepted Answer

A lock-box service is most beneficial for a firm with a geographically dispersed customer base as it allows for faster and more efficient processing of payments. The lock-box service collects and deposits customer payments directly into the firm's account, eliminating the need for the firm to physically receive and deposit paper cheques. This reduces the time and costs associated with processing payments and can improve cash flow management. Firms with a large number of suppliers (A) or who write a large number of cheques daily (B), or who sell goods to very few customers (D) may not see as much benefit from a lock-box service.

A Lock-Box Service Will Benefit the Following Firm the Most