Lacey's Has an Average Collection Period of 32 Days and Factors

question 104

Multiple Choice

Lacey's has an average collection period of 32 days and factors all of its receivables immediately at a 1.1 percent discount.Assume all accounts are collected in full.What is the firm's effective cost of borrowing?

• A)13.38 percent
• B)13.45 percent
• C)13.57 percent
• D)13.63 percent
• E)13.88 percent

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Definitions:

Work-sharing

An employment arrangement where workers reduce their hours to prevent layoffs, often sharing tasks among a group.

The Second Shift

The concept that refers to the unpaid household and caregiving work that typically follows one's primary job, disproportionately affecting women.

Social Deviance

Any behavior or action that violates societal norms and is likely to result in disapproval, sanction, or punishment by the general public.

Conflict Theory

A viewpoint in sociology that interprets social existence as a form of rivalry, concentrating on how resources, power, and inequality are allocated.