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NEW QUESTION: 1
The Frame Supply Company has just acquired a large account and needs to increase its working capital
by $100,000. The controller of the company has identified four alternative sources of funds, which are
given below.
A: Pay a factor to buy the company's receivables, which average $125,000 per month and have an
average collection period of 30 days. The factor will advance up to 80 percent of the face value of
receivables at 10 percent and charge a fee of 2 percent of all receivables purchaseD. The controller
estimates that the firm would save $24,000 in collection expenses over the year.
Assume the fee and interest are not deductible in advance.
B: Borrow $110,000 from a bank at 12 percent interest. A 9 percent compensating balance would be
required.
C: Issue $110,000 of six-month commercial paper to net $100,000. (New paper would be issued every 6
months.)
D: Borrow $125,000 from a bank on a discount basis at 20 percent. No compensating balance would be
required.
Assume a 360-day year in all of your calculations.
The cost of Alternative B is:
A. 10.5 percent.
B. 12.0 percent.
C. 13.2 percent.
D. 21.0 percent.
Answer: C
Explanation:
Choice "c" is correct.
Choices "a", "b", and "d" are incorrect, per the above calculation.
NEW QUESTION: 2
Which of the following attempts to establish an international standard for eDiscovery processes and best practices?
A. ISO/IEC 31000
B. ISO/IEC 27001
C. ISO/IEC 27050
D. ISO/IEC 19888
Answer: C
Explanation:
ISO/IEC 27050 strives to establish an internationally accepted standard for eDiscovery processes and best practices. It encompasses all steps of the eDiscovery process: identification, preservation, collection, processing, review, analysis, and the final production of the requested data.
NEW QUESTION: 3
A customer with a single Cisco Adaptive Security Appliance wants to separate multiple segments of the e-commerce network to allow for different security policies. What firewall technology accommodates these design requirements?
A. virtual private network
B. private VLANs
C. admission control
D. virtual contexts
Answer: D
NEW QUESTION: 4
In which three ways can you create a positive image of your organization? (choose three)
A. Provide consistent and fair services
B. Respond to customers in a timely fashion
C. Follow all call-flow procedures
D. Display sensitivity to the feelings of your customers
Answer: A,B,D