A Company Currently Uses an Overdraft at 10% Per Annum

question 11

Multiple Choice

A company currently uses an overdraft at 10% per annum.
A new credit controller is brought in,at a cost of £5,000 salary more than the previous person doing the job.After one year she claims to have saved the company money because she has reduced receivables from £50,000 to £20,000.
How much has she saved the company?

• A) She has saved the company £25,000
• B) She has saved the company £30,000
• C) She has cost the company £2,000
• D) She has cost the company £35,000

Understand the differing schools of economic thought and their primary advocates.

Comprehend the equation of exchange and its components.

Identify the key concepts central to Keynesian economics, including investment determination.

Recognize the historical context and evolution of economic theories over time.

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Definitions:

Negative Feedback Mechanism

A process where the output of a system dampens or reduces the processes leading to the output, maintaining system stability.

Parathyroid Glands

Small endocrine glands in the neck that produce parathyroid hormone, which regulates calcium levels in the blood and bone.

Pineal Gland

A small endocrine gland in the brain that produces the hormone melatonin, involved in regulating sleep-wake cycles.

Melatonin

A hormone secreted by the pineal gland that plays a role in setting circadian rhythms.