Which of the Following Is a Valid Reason for a Company

question 127

Multiple Choice

Which of the following is a valid reason for a company to forgo a discount on a purchase made under terms 2/10,n/30?

• A)The company does not have the cash and would have to borrow funds to pay the invoice within the discount period.
• B)The interest rate the company can earn on investments exceeds the annualized discount rate.
• C)The company plans to return some of the merchandise before the end of the credit period.
• D)Other suppliers offer a 1% discount for prompt payment.

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Definitions:

Demonstrates Writing

The act of showing one's ability to compose text for various purposes, including communication and articulation of ideas.

Negative Message

Communication that conveys bad news, rejection, or feedback that might not be favorable to the receiver.

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A formal or informal appeal by an employee to take a predetermined amount of time off from work.

Plan Strategically

The process of defining a direction and making decisions on allocating resources to pursue this strategy.