The process of managing day to day operations is:

a.Planning

b.Directing

c.Controlling

d.Measuring

Koopman's Chickens, Inc. plans to borrow $275,000 from its bank for one year. The rate of interest is 9%, but a compensating balance of 20% is required. What is the effective rate of interest?

a.Less than 11.4%

b.More than 11.4% but less than 11.6%

c.More than 11.6% but less than 11.8%

d.More than 11.8%