A Firm Sells Its $1,000,000 Receivables to a Factor for $960,000.Average

question 68

Multiple Choice

A firm sells its $1,000,000 receivables to a factor for $960,000.Average collection period is one month.The effective annual rate is:

• A) 27.43%.
• B) 48.00%.
• C) 60.10%.
• D) 63.21%.

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Definitions:

Identifying Market Opportunity

Identifying market opportunity involves analyzing market trends, needs, and gaps to find untapped areas where a new product or service could be successfully introduced.

Market Opportunity

The potential for a company to increase sales and achieve a sustainable competitive advantage by identifying and serving new markets or segments.

Customer Demand

refers to the desire and willingness of consumers to purchase goods or services at a particular price.

End User Profile

A detailed description of the final consumer for whom a product or service is intended, focusing on their needs, behaviors, and preferences.