Freeman Builders, Inc

question 103

Multiple Choice

Freeman Builders, Inc.buys on terms of 2/15, net 30.It does not take discounts, and it typically pays 60 days after the invoice date.Net purchases amount to $720,000 per year.What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?

• A) 10.86%
• B) 12.07%
• C) 13.41%
• D) 14.90%
• E) 16.55%

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Definitions:

Mandatory Minimum

A legal requirement that dictates the minimum sentence a judge must impose for a particular crime, reducing judicial discretion.

Rehabilitation

A process aimed at enabling individuals to restore their skills, health, or abilities, often used in the context of recovery from injury or in criminal justice.

Nothing Works

A controversial perspective in criminology that argues traditional rehabilitation programs are ineffective in reducing recidivism among convicted criminals.

Demise of Rehabilitation

The decline or reduction in focus on rehabilitation as a primary goal in the penal system, often replaced by or balanced with punitive or deterrent measures.