Use the Information to Answer the Following Question(s)

question 38

Multiple Choice

Use the information to answer the following question(s) .
SureDrip Irrigation Systems Inc. is supplied with plastic chips for their plastic injection molding manufacturing process. Their supplier, Sun Chemical, Inc. offers financing terms of a 2% discount if the accounts payable are paid in 10 days or less with the full balance due in 45 days. Short-term financing available to SureDrip is available at an annual rate of 9.6%. SureDrip has just purchased $400,000 of plastic chips from Sun Chemical.
-Refer to Instruction 21.1. What is the effective annual interest cost of supplier financing offered by Sun Chemical?

• A)7.3%
• B)9.5%
• C)10.4%
• D)22.9%

Grasp the economic and operational considerations in extending credit to customers.

Recognize the characteristics of creditworthy customers through the five Cs of credit.

Understand the basic concepts and theories of motivation.

Explain the physiological mechanisms related to hunger and satiety.

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Definitions:

Line Orientation

The direction in which a line or linear object points or aligns within a visual field or specified space.

Stimulus

is any event or situation that evokes a response from an organism in the environment.

Perceptual Processing

The act of receiving, organizing, and interpreting sensory information from the environment.

Uniform Parts

Elements or components that are identical in form or function within a larger system or group.