A Firm Is Offered Trade Credit Terms of 3/15,net 45

question 30

Multiple Choice

A firm is offered trade credit terms of 3/15,net 45.The firm does not take the discount,and it pays after 67 days.What is the approximate annual cost of not taking the discount?

• A) 21.41%
• B) 22.07%
• C) 22.95%
• D) 23.48%
• E) 24.52%

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Definitions:

Employee Engagement

The emotional commitment and sense of belonging employees feel towards their organization, which influences their willingness to contribute to the company's success.

Role Perception

Refers to an individual's understanding of their job duties and responsibilities within an organization.

Motivation

The psychological process that initiates, guides, and maintains goal-oriented behaviors.

Mechanistic Perspective

A viewpoint in organizational theory that sees organizations as machine-like, with highly organized, rigid, and controlled structures.