If Quick Foregoes the Discount but Does Not Pay for Its

question 70

Multiple Choice

If Quick foregoes the discount but does not pay for its purchases until day 40, what is Quick's effective cost of using this source of credit? Assume that no penalty is incurred for late payment.

• A) 18.25%
• B) 36.73%
• C) 24.83%
• D) 24.49%

---

Definitions:

Majority Vote

A voting outcome that is achieved when more than half of the votes cast are in favor of a proposition or electing a candidate.

Rules of Agency

Legal guidelines governing the relationship between an agent, who acts on behalf of another person or entity (the principal), and the principal itself.

Shareholders

Individuals or entities that own shares in a corporation, giving them rights to dividends and a stake in the company's equity.

Majority Vote

A voting rule used in decision-making processes where more than half of the votes cast by eligible participants is required to make a decision or elect a candidate.