Jacob Benito Runs a Business Based in Norway That Sells

question 55

Multiple Choice

Jacob Benito runs a business based in Norway that sells the steel used in hockey blades.Jacob sold $50 000 worth of steel to Wayne Lemieux of Canada on 8 August 2016.Using a bill of exchange, the two parties agreed that the $50 000 would not be due until 8 October 2016 and Wayne arranged for the payment to be made through his account at ABC Trust Company.Which of the following is true?

• A)Jacob is the payee, Wayne is the drawer, and ABC is the drawee.
• B)Jacob is the drawee, Wayne is the drawer, and ABC is the payee.
• C)Jacob is the drawee, Wayne is the payee, and ABC is the drawer.
• D)Jacob is the payee, Wayne is the drawee, and ABC is the drawer.
• E)Jacob is the payee, Wayne is the drawee, and ABC is the other payee.

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Definitions:

7% Rate

An interest or return rate of seven percent, often referring to the annual percentage rate received by an investment or charged on a loan.

ROE

Return on Equity is a financial performance metric that is calculated by dividing a company's net income by its shareholders' equity.

Du Pont Identity

A formula that breaks down Return on Equity (ROE) into three components: operating efficiency, asset use efficiency, and financial leverage.

Forecast Increase Sales

A prediction or estimate of future growth in sales, based on current trends, market conditions, and economic indicators.