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:

Lofty Ideals

High moral or ethical principles that are admired for their nobility but may be difficult to achieve or maintain.

Nazism

A political ideology combining extreme nationalism, racism, and totalitarianism, associated with the Nazi Party led by Adolf Hitler in Germany.

Low Status

Describes individuals or groups that are ranked lower in the social hierarchy, often having fewer resources or social privileges.

Democratic Leadership

A leadership style in which the leader makes decisions based on the input of each team member, encouraging group participation and delegating tasks.