Asked by Sherry Smith on Jul 12, 2024

verifed

Verified

The growth of the Internet has increased the popularity of on-line retailing and banking. What are the implications for float management?

On-line Retailing

Online Retailing is the selling of goods or services over the internet, where customers can shop from a variety of vendors at any time.

Internet Growth

The expansion and increase in usage, infrastructure, and capabilities of the internet across the world.

  • Understand the impact of the Internet on the growth of online retailing and banking and its implications for float management.
verifed

Verified Answer

VV
Vanessa ValdovinosJul 17, 2024
Final Answer :
As consumers use on-line banking to make payments, disbursement float is decreased. For firms that sell products over the Internet, collection float may be significantly decreased. The impact on net float is thus unclear. This question leaves much to the student's imagination and knowledge of the current state of the Internet.