If a Firm Busy on Terms of 2/10 Net 30

question 109

True/False

If a firm busy on terms of 2/10 net 30, it should pay as early as possible during the discount period.

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Definitions:

George Homans

An American sociologist known for his work in developing social exchange theory, which posits that the exchange of goods, services, and social values plays a key role in the formation of social relationships.

Success-Stimulus

The principle that success in a certain activity or field encourages continued action and effort in that or similar activities.

Preferences

Individual choices or inclinations towards certain options, actions, or outcomes, often studied in psychology and economics.

Availability of Resources

The extent to which necessary or desired materials, information, support, or capital is accessible for use or consumption.