Final answer:
Lengthening disbursement float refers to extending the time between writing a check and the funds being withdrawn, serving as a cash management strategy to retain funds longer.
Step-by-step explanation:
When a payor lengthens disbursement float, it means the company is increasing the amount of time between when a check is written and when the actual funds are depleted from the company's bank account. This practice is a form of cash management strategy. By delaying the outflow of cash, a company can earn additional interest on its available funds or allocate those resources to other areas for a longer period. However, ethical considerations must be taken into account, as excessively increasing the disbursement float may be seen as misleading to payees expecting prompt payment.