Auckland Plastics Would Like to Improve Its Cash Flow by Offering

question 12

Multiple Choice

Auckland Plastics would like to improve its cash flow by offering its customers a discount for prompt payment. The company would MOST likely use:

• A) special discount.
• B) quantity discount.
• C) functional discount.
• D) cash discount.
• E) allowance.

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Definitions:

System 2

A term often related to dual-process theories in psychology, highlighting slower, more deliberative, and logical thinking, as opposed to intuitive and fast reactions.

Systematic Errors

Suboptimal choices that (1) are not rational because they do not maximize a person’s chances of achieving his or her goals and (2) occur routinely, repeatedly, and predictably.

Neoclassical Economics

An economic theory that focuses on how the perception of utility and costs influence the supply and demand equilibrium.

Complementary

Products or services that enhance or are used together with another, increasing the value or usability of either.