1. What factors should the firm consider in deciding whether to establish a lockbox collection system?
2. What are the primary reasons a firm holds a liquid asset balance?
3. Describe the cost trade-offs associated with maintaining the following:
a. Excessive liquid asset balances
b. Inadequate liquid asset balances
4. Define float and describe the difference between disbursement float and deposit float.
5. Describe the primary services a bank provides to a firm. How is the bank com- pensated for these services?
6. Describe the methods available to a firm for expediting the collection of cash.
7. Describe the techniques available to a firm for slowing disbursements.