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:

Disparate-Treatment Discrimination

A form of discrimination in which an employee or job applicant is treated unfavorably because of their race, color, national origin, sex, or religion in comparison to others.

Disparate-Impact Discrimination

Unintentional discrimination that occurs when a neutral policy disproportionately affects a protected group.

Filing a Claim

The process of formally submitting a request for compensation or remedy for a loss or wrong experienced.

Title VII

is a section of the Civil Rights Act of 1964 prohibiting employment discrimination based on race, color, religion, sex, or national origin.