Question

The main benefits associated with a well-designed concentration system include: a. higher opportunity costs b. greater...

The main benefits associated with a well-designed concentration system include:

a.

higher opportunity costs

b.

greater control over balances

c.

less float

d.

greater control over balances and improved investment returns.

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Answer #1

Answer- option (d)

  • Concentration system will designed in such a manner that it will take control of balances. So that amount of money can be re invested in future.
  • As a result returns from portfolio will be able to generate more returns from investment.
  • It will enhance the operational efficiency and organisation will be able to repay their debt obligations in time. Hence solvency position will improve.

Thus option (d) is the most suitable answer.

All the best for your exam! Thank you!

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