Use the Information to Answer the Following Question(s)

question 56

Multiple Choice

Use the information to answer the following question(s) .
Cypress Systems Inc., of Florida, agrees to sell specialized hydroponic growing equipment to Landcaster's of Australia. Because the two companies have never done business with each other, Cypress requires a banker's acceptance as payment for the $1,000,000 order. The banker's acceptance carries a 1.4% commission per annum and payment is to be received in 6 months. If Cypress Inc. chooses to discount or sell the banker's acceptance to its bank, the discount rate is 1.00% per annum.
-Refer to Instruction 16.1. What is the size of the commission Cypress will pay the bank for the banker's acceptance?

• A) $7,000
• B) $5,000
• C) $12,000
• D) $14,000

---

Definitions:

Undercontrolled

Describes individuals or behaviors that exhibit a lack of self-control or regulation, often resulting in impulsivity or difficulty adhering to social norms.

Overcontrolled

Referring to a behavioral characteristic where an individual might excessively regulate or suppress their emotions and impulses.

Borderline

Often refers to borderline personality disorder (BPD), a mental health condition characterized by pervasive instability in moods, behavior, self-image, and functioning.

Narcissism

A personality trait characterized by an inflated sense of self-importance, need for admiration, and lack of empathy for others.