Ignoring Defaults, What Is the Approximate Effective Cost of Factoring

question 53

Multiple Choice

Ignoring defaults, what is the approximate effective cost of factoring if receivables are sold at a 4% discount and the average collection period is 2 months?

• A)19.40%
• B)24.00%
• C)26.53%
• D)27.75% $4/$96 = 4.17% per two-month period

Determine strategies for futures trading based on market conditions and contract specifics.

Grasp the concept and application of hedging with futures contracts and its impact on financial positions.

Understand the relationship between futures trading and other financial markets, including stock indices and interest rates.

Understand the fundamental characteristics and strategies of effective pitching in PR.

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Definitions:

Permanently Replaced Strikers

Workers who go on strike and are then permanently replaced by the employer, a situation possible under certain labor laws, notably in the United States.

Hot Cargo Agreements

Agreements between labor unions and employers that prohibit the employer from handling, using, or dealing with goods produced by a company targeted by a union boycott.

Monopolies

Market structures in which a single seller dominates trade in a good or service, often leading to reduced competition and higher prices.

Sole Bargaining Agent

The exclusive union designated to represent and negotiate on behalf of all employees in a bargaining unit, regardless of union membership.