The Corner Store Factors All of Its Receivables Immediately at a Discount

question 92

Multiple Choice

The Corner Store factors all of its receivables immediately at a discount rate of 1.1 percent. The average collection period is 37.4 days and default is unlikely. What is the effective cost of borrowing?

• A) 10.24 percent
• B) 13.97 percent
• C) 15.82 percent
• D) 11.40 percent
• E) 12.58 percent

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Definitions:

Inherited Traits

Characteristics or attributes passed down from parents to offspring through genes.

Twin Studies

Research methods that compare the similarity of twins to determine the genetic and environmental influences on traits.

Adoption Studies

Research investigations that compare biological and adoptive family members to understand genetic and environmental influences on behavior.

Family Studies

Research or academic studies that investigate the dynamics, behaviors, and patterns within family systems.