Assume the Following Facts About a Firm That Borrows by Pledging

question 167

Multiple Choice

Assume the following facts about a firm that borrows by pledging its receivables: $\begin{array}{ll}\text { Average balance of accounts receivable }&\$60,000\\\text { Annual receivables turnover ( } 360 / \mathrm{ACP}) & 6 \mathrm{x} \\\text { Administrative fee charged on all new receivabless } & 1.5 \% \\\text { Interest rate on outstandingloans } & 11.5 \% \\\text { Percent of receivables accepted } & 75 \%\end{array}$ What is the effective cost of financing stated as an annual rate?

• A) 23.5%
• B) 13%
• C) 13.5%
• D) 16.83%

Appreciate the complexities involved in modern family structures, including "fictive kin" and the "sandwich generation."

Analyze the factors influencing marriage, parenting, and adoption trends.

Evaluate the psychological and social impact of major life events such as job loss or divorce on adults.

Identify the effects of work schedules on adult health and lifestyle.

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Definitions:

Wrongdoer

An individual or entity that has acted improperly, unlawfully, or maliciously.

Universal Law

A rule or body of rules that applies universally and is considered binding on all members of a group or category.

Legal Positivism

A theory in philosophy of law which holds that laws are rules established by human authorities and there's no inherent or necessary connection between law and morality.

Historical School

A school of legal thought that looks to the past to determine what the principles of contemporary law should be.