A Credit Policy of "2/10,net 30" Means

question 17

Multiple Choice

A credit policy of "2/10,net 30" means

• A)that if a customer pays its bill within 10 days,it will receive a 30 percent discount.
• B)that if a customer pays its bill within 30 days,it will receive a 10 percent discount.
• C)that if a customer pays its bill within 2 days,it will receive a 10 percent discount.
• D)that if a customer pays its bill within 10 days,it will receive a 2 percent discount.
• E)None of these are correct.

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Definitions:

Performance Metrics

Quantitative measures used to gauge an organization's performance in various areas.

Balanced Scorecard

A strategic planning and management system used by organizations to communicate what they are trying to accomplish, align the day-to-day work with strategy, and monitor performance against strategic goals.

Balanced Scorecard

A system of strategic planning and management designed to align organizational activities with its vision and strategy, enhance communication both internally and externally, and track the performance of the organization in relation to its strategic objectives.

Eco-Efficiency

An approach that seeks to create more goods and services while using fewer resources and producing less waste and pollution, aligning economic and environmental performance.