A Firm Is Offered Trade Credit Terms of 3/15,net 45

question 30

Multiple Choice

A firm is offered trade credit terms of 3/15,net 45.The firm does not take the discount,and it pays after 67 days.What is the approximate annual cost of not taking the discount?

• A) 21.41%
• B) 22.07%
• C) 22.95%
• D) 23.48%
• E) 24.52%

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Definitions:

Member Diversity

The range of differences among members of a group or team, including demographics, skills, experiences, and perspectives, which can influence group dynamics and outcomes.

Subgroups

Smaller groups formed within a larger group, often with common interests or characteristics distinguishing them from the larger group.

Team's Composition

The makeup or arrangement of individuals within a team, including their skills, roles, and diversity.

Member Empowerment

The process of granting authority or power to team members to make decisions and take action within their roles.