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trapecia [35]
3 years ago
11

Newsome Inc. buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60 days. What is the nomi

nal annual percentage cost of its non-free trade credit, based on a 365-day year?
Business
1 answer:
gogolik [260]3 years ago
5 0

Answer:

16.22%

Explanation:

3/15, net 45 means that if Newsome pays within 15 days, it will get discount of 3%, otherwise it can pay within 45 days in full.

Nominal annual percentage cost of  non-free trade credit based on 365 days can be calculated using the below formula:

Discount %/(100%-Discount %)*(365/(Actual credit days – Discount days))

In this case

Discount%=2%

Actual credit days=60

Discount period=15

Cost of non- free credit=2%/(100%-2%)*(365/(60-15)

                                       =2%/98%*(365/45)

                                       =0.02*8.11

                                       =16.22%

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Correct/Complete Question:

In e-business, secure web applications are one of the critical security controls that each organization must implement to reduce risk. True or False

Answer:

True

Explanation:

Web application security is a branch of information in which website security, its applications and its services and content is protected.

In e-commerce (electronic commerce), websites are used to conduct business, orders, payment, deliveries, etc. Security of this website is important so as to protect the e-business firm and its customers from  various cyber-crimes like credit card phishing, personal information gathering, etc. When an e-business website is secured properly, business is done without fear by customers and also the firm itself. Examples of e-business website include walmart, amazon, bestbuy, etc.

Cheers.  

3 0
3 years ago
the burden of a tax falls entirely on sellers if group of answer choices the price elasticity of demand is unitary elastic the p
nadezda [96]

B) If the price elasticity of demand is zero, then all of the tax burdens fall on the sellers (perfectly inelastic).

<h3><u>How does price elasticity work?</u></h3>

A measure of a product's consumption change in response to a price change is called price elasticity of demand. Price elasticity is a tool used by economists to analyze how changes in a product's price affect its supply and demand. Supply has an elasticity similar to demand, and it's called the price elasticity of supply.

The relationship between a change in supply and a change in price is referred to as price elasticity of supply. By dividing the percentage change in quantity supplied by the percentage change in price, it is determined. What products are produced at what prices depends on the interaction of the two elasticities.

Learn more about price elasticity with the help of the given link:

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8 0
10 months ago
_________ is a condition in which the average level of prices is actually falling.
jeyben [28]

Answer:

<em>Deflation</em>

Explanation:

<em>Deflation is the overall decrease in products and services prices when  the rate of inflation drops below 0%</em>. it naturally occurs when an  economy's money supply is fixed.  

The buying power of currency and salaries in moments of deflation is greater  than they would have been.

This is different but comparable to <em>price deflation,  which is a general price level reduction.</em>

6 0
3 years ago
Overview of financial planning
VMariaS [17]

Answer:

1. Operating plan.

2. Operating plan.

3. Financial plan.

4. Dividend policy.

5. B and C.

Explanation:

1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.

2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.

3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.

4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.

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Financial planning can be defined as the process of estimating the amount of capital required for the smooth operations of the business and determine how to achieve the firm's set goals and objectives.

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6 0
3 years ago
An investor who has a margin account with his brokerage firm buys 100 shares of Quick Flip Inc. Later that day, the investor sel
Hoochie [10]

Answer:

Yes  this sequence of transaction is considered as a day trade.

Explanation:

As per the definition of the day trading, <em>Day trading is defined as the purchase and sale of a security within a single trading day. It can occur in any marketplace but is most common in the foreign exchange (forex) and stock markets.</em>

As per this definition, the trading has to be done such that the purchase and sale is made on the same day. As indicated in the question ,this is the case so the given sequence of transactions is a day trade.

6 0
3 years ago
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