Owen Was Surprised When He Calculated the Percentage Annual Interest

question 41

Multiple Choice

Owen was surprised when he calculated the percentage annual interest rate on his accounts payable.He discovered that failure to take advantage of the discount offered by suppliers

• A)makes small difference since a business does not pay a high interest rate.
• B)makes a large difference since a business pays a high interest rate.
• C)has no effect on cash flow since the interest rates are so low.
• D)will have erratic effects on rates for the use of a supplier's money.

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Definitions:

Nonfarm Activities

Economic activities that do not involve agriculture, farming, or animal husbandry, typically in sectors like manufacturing, services, and technology.

Americans

Citizens of the United States or people living within its boundaries; also can refer to the broader identities and cultures within the United States.

Third-party Candidate

A candidate in an electoral system who represents a political party outside the two dominant parties in a two-party system.