Use the Information to Answer the Following Question(s)

question 56

Multiple Choice

Use the information to answer the following question(s) .
Cypress Systems Inc., of Florida, agrees to sell specialized hydroponic growing equipment to Landcaster's of Australia. Because the two companies have never done business with each other, Cypress requires a banker's acceptance as payment for the $1,000,000 order. The banker's acceptance carries a 1.4% commission per annum and payment is to be received in 6 months. If Cypress Inc. chooses to discount or sell the banker's acceptance to its bank, the discount rate is 1.00% per annum.
-Refer to Instruction 16.1. What is the size of the commission Cypress will pay the bank for the banker's acceptance?

• A) $7,000
• B) $5,000
• C) $12,000
• D) $14,000

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Definitions:

Internal Marketing

The practice of promoting a company’s values, culture, and goals to its employees to foster internal brand advocacy and loyalty.

Identity-Image

Relates to the conceptual gap between how a company perceives itself (identity) and how it is perceived by its customers (image).

Culture-Identity

Culture-Identity refers to the way individuals or groups define themselves in relation to the cultural contexts they are part of, impacting their values, beliefs, and behaviors.

Culture-Identity

Relates to how cultural backgrounds, practices, and beliefs shape an individual's or group's sense of self and identity.