On October 2, Demitri Company Borrowed $100,000, at 4% Annual

question 10

Multiple Choice

On October 2, Demitri Company borrowed $100,000, at 4% annual interest, from First National Bank. Interest will be paid when the loan matures one year from the issue date. What is the amount of interest that Demitri would accrue on December 31, the end of the company's fiscal year?

• A)$4,000
• B)$3,000
• C)$1,000
• D)$333
• E)$1,333

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Definitions:

Competitive Forces

Elements in the external environment that influence the competitiveness of a company, including rivalry among existing competitors, threat of new entrants, threat of substitute products, bargaining power of buyers, and bargaining power of suppliers.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the profitability of an enterprise beyond basic financial profit.

Monopoly

A market structure characterized by a single supplier controlling all the supply of a particular good or service.

Economic Loss

A situation where total costs exceed total revenues, leading to a negative profit.