Dixie Tours Inc

question 68

Multiple Choice

Dixie Tours Inc. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 35 days after the invoice date. Net purchases amount to $720,000 per year. What is the nominal annual cost of its non-free trade credit? (Assume a 365-day year.)

• A) 17.2%
• B) 23.6%
• C) 26.1%
• D) 37.2%
• E) 50.6%

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Definitions:

Person-Situation Controversy

A debate within psychology about whether behavior is more influenced by personality traits or by situational factors.

Trait Theories

An approach to the study of human personality which focuses on the measurement of consistent patterns of behavior, thought, and emotion.

Positive Self-Concept

An individual's view of themselves that is generally positive, reflecting a belief in one’s own abilities and self-worth.

Abraham Maslow

A psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.