The Term 2/10 Net 30 Means

question 40

Multiple Choice

The term 2/10 net 30 means:

• A)If the invoice is paid within 10 days,a 2% discount can be taken.If the invoice is paid between 11 and 29 days a 1% discount can be taken.After 30 days the full invoice is due.
• B)If the invoice is paid within 2 days,a 10% discount can be taken,otherwise the full invoice is due in 30 days.
• C)If the invoice is paid within 2 days,a 10% discount can be taken,otherwise a 2% discount can be taken if the invoice is paid in 30 days.
• D)If the invoice is paid within 10 days,a 2% discount can be taken,otherwise the full invoice is due in 30 days.

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Definitions:

Potential Acquirer

An entity, often a company or investor, that is considered likely or has expressed interest in purchasing another company.

Greenmail

A strategy where a company pays a premium to buy back its own stock from a corporate raider to prevent a hostile takeover.

Legal Device

A legal tool or method used to meet a requirement, enforce a right, or manage a legal process.

Hostile Takeover

A situation where a company is acquired by another company without the consent of the former company's management.