A Credit Policy of "2/10, Net 30" Means That the Selling

question 119

True/False

A credit policy of "2/10, net 30" means that the selling company offers a 2 percent discount if the customer pays within 10 days.

---

Definitions:

Comparative Advantage

The capacity of a nation or company to manufacture a specific good or service with a lower opportunity cost compared to its rivals.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors with the same resources.

Production

Any good or service for which people are willing to pay.

Kegs

Large barrels used to store and serve beer or other liquids, often used in the context of breweries or social gatherings.