Use the Information to Answer the Following Question(s)

question 47

Multiple Choice

Use the information to answer the following question(s) .
Jackson Automotive Inc. of California agrees to sell specialized automotive parts to Hidatsi of Korea. Because the two companies have never done business with each other, Jackson 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 Jackson Inc. chooses to discount or sell the bankers acceptance to its bank, the discount rate is 1.00% per annum.
-Refer to Instruction 15.1. What is the total Jackson Automotive can expect to receive if the firm takes payment today?

• A) $993,000
• B) $995,000
• C) $988,000
• D) $996,000

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Definitions:

Milgram's Experiment

An ethical experiment conducted by psychologist Stanley Milgram, which measured the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Bureaucracies

Organized administrative systems in which tasks and responsibilities are divided among various offices and departments, characterized by hierarchical structure, fixed rules, and a focus on procedural efficiency.

Symbolic Interaction Theory

is a sociological perspective that focuses on how individuals use symbols and their meanings to create and maintain social reality through their interactions.

Primary Groups

Small social groups whose members share close, personal, enduring relationships, such as families and close friends.