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.

---

Definitions:

Feeling of Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with sexual desire.

Intense Cognitive Focus

The mental state of being deeply engrossed or concentrated on a specific task or subject matter.

Sex-Related Attitudes

The beliefs or opinions that individuals hold about sexuality, sexual behavior, and roles associated with gender.

Attitude-Behavior Consistency

The correlation between a person's beliefs, feelings, and how they respond to certain ideas, objects, or other people.