Which firms benefit most from a lockbox plan?
A)those with widely disbursed manufacturing facilities
B)those that have a large marketable securities portfolio and cash to protect
C)those that hold inventories at many different sites
D)those that have customers who operate in many different parts of the country

Question

Quizplus · Accepted Answer

Lockbox plans are most beneficial for companies that have customers who operate in many different parts of the country. By using a lockbox, payments can be collected more quickly and efficiently, reducing the turnaround time on receivables. This is particularly important for businesses that need to manage cash flow and maintain liquidity to support ongoing operations.

Which Firms Benefit Most from a Lockbox Plan