If a Company Is Given Credit Terms of 2/10 N/30

question 231

Multiple Choice

If a company is given credit terms of 2/10 n/30 it should

• A) hold off paying the bill until the end of the credit period while investing the money at 10% annual interest during this time.
• B) pay within the discount period and recognize a savings.
• C) pay within the credit period but don't take the trouble to invest the cash while waiting to pay the bill.
• D) recognize that the supplier is desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.

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Definitions:

Corporate Culture

The shared values, practices, and goals that shape the identity and operations of a company, influencing its employees' behavior.

Committees

Groups of individuals designated to perform a specific function or address issues within an organization, often bringing together expertise from different areas.

Formal Groups

Structured groups within an organization, created deliberately to achieve specific objectives, characterized by defined roles and responsibilities.

Work Groups

Teams within an organization focused on achieving specific goals or completing particular tasks together.