A Buyer Failed to Take Advantage of the Vendor's Credit

question 101

Multiple Choice

A buyer failed to take advantage of the vendor's credit terms of 2/15,n/45,but instead paid the invoice in full at the end of 45 days.By not taking advantage of the cash discount,the equivalent annual interest lost on the amount of the purchase is:

• A)12.2%
• B)16.2%
• C)18.9%
• D)24.3%
• E)24.5%

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Definitions:

Product Repositioning

The strategic process of changing the market's perception of a product by altering its marketing mix, including its positioning, pricing, packaging, or promotion, often in response to changing market conditions or consumer preferences.

Low-strength Aspirin

Aspirin with a lower dosage, typically around 81 mg, used for heart health and to prevent blood clots.

Competitive Products

Goods or services that are in rivalry with each other in the marketplace.

Product Repositioning

The strategy of changing the market's perception of a product by altering its positioning, marketing mix, or target markets.