What Is the Effective Annual Cost of Credit Terms of 3/15

question 63

Multiple Choice

What is the effective annual cost of credit terms of 3/15 net 30,if the firm stretches the accounts payable to 60 days?

• A)1.7%
• B)3.35%
• C)12.65%
• D)28.03%
• E)17.42%

Recognize the role and methodologies of production and operations management in manufacturing.

Differentiate between analytic, synthetic, and other types of production systems based on their operation characteristics.

Identify the significance of certifications such as LEED in promoting sustainable building practices.

Grasp the concept of utility and the influence of production processes on creating value-added goods and services.

---

Definitions:

Corporation

A legal entity that is separate from its owners, providing them with limited liability and the ability to raise capital through share issuance.

Purported Partner

An individual who is represented or appears to be a partner in a business, regardless of the formal truth of that status.

Financial Difficulties

A situation in which an individual or organization struggles to manage their monetary obligations, potentially leading to insolvency or bankruptcy.

RUPA

An acronym for the Revised Uniform Partnership Act, which is a statutory law that governs the formation, operation, and dissolution of partnerships in the United States.