What Is the Effective Cost of Credit Terms of 3/5

question 71

Multiple Choice

What is the effective cost of credit terms of 3/5 net 45 if the firm stretches the accounts payable to 60 days?

• A)12.9%
• B)35.6%
• C)39.9%
• D)22.4%
• E)42.7%

Understand the impact of external environmental factors on marketing decisions through environmental scanning.

Recognize the importance of promotional strategies in achieving marketing objectives.

Understand the distinction between different types of memory processing (automatic, effortful, maintenance, and elaborative rehearsal).

Identify the effects of encoding strategies on memory recall (primacy, recency, depth of processing).

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Definitions:

Black Smokers

Hydrothermal vents on the seafloor in which hot water from within the rock jets out into cold seawater and forms a cloud of minerals, especially those rich in sulfur.

Sulfide Minerals

Minerals composed of sulfide ions and one or more metals; important as ore minerals and for their chemical properties.

Fast-Spreading Ridge

A geological feature where tectonic plates are diverging at a rapid rate, leading to significant volcanic activity and the formation of new oceanic crust.

Hydrothermal Vents

Hydrothermal vents are openings in the sea floor from which heated mineral-rich water flows, often located near volcanically active places.