What Is the Benefit for a Firm with Daily Sales

question 98

Multiple Choice

What is the benefit for a firm with daily sales of $30,000 to be able to speed up collections by 3 days,assuming an 8% annual opportunity cost of funds?

• A) $7,200 daily benefit
• B) $7,200 annual benefit
• C) $30,000 annual benefit
• D) $90,000 annual benefit

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Definitions:

Flexibility

The quality of being adaptable or variable in face of change or new circumstances.

Circulatory Health

Pertains to the health and functioning of the circulatory system, which includes the heart, blood vessels, and blood, essential for transporting nutrients, oxygen, and hormones, and for removing waste products.

Organization Pattern

A logical structure used to arrange and present information in written or spoken form, such as chronological, spatial, or cause-and-effect.

Pastry

A type of baked goods typically made from ingredients like flour, water, and shortening that can be sweet or savory.