Solved

Formal Line of Credit: Trend Ltd Has Just Set Up

question 61

Multiple Choice

Formal line of credit: Trend Ltd has just set up a formal line of credit of $5 million with First National Bank. The line of credit is good for up to three years. The bank will be charging them an interest rate of 7.5 per cent on the loan, and in addition the company will pay an annual fee of 50 basis points on the unused balance. The company borrowed $2,300,000 on the first day the credit line became available. What is the company's effective interest rate on this line of credit? Round to one decimal place.

Recognize the differences and applications of positive reinforcement, negative reinforcement, and punishment.

Identify examples of learning theories in action, including operant conditioning, classical conditioning, and observational learning.

Explain the significance of latent learning and its demonstration in behavior.

Understand the definition and key characteristics of learning.

Definitions:

Raw Materials Purchases

The total cost of all components bought for use in the production process of goods.

Cash Disbursements

Outgoing payments made by a business, often documented in a cash disbursement journal, including expenses, creditor payments, and other financial outflows.

Cost of Goods Sold

Cost of goods sold (COGS) represents the direct costs attributable to the production of goods sold by a company, including materials and labor.

Merchandise Inventories

Goods or products that a company holds for the purpose of sale to customers in the ordinary course of business.