The Credit Terms Offered to a Customer by a Business

question 167

Multiple Choice

The credit terms offered to a customer by a business firm were 2/10, n/30, which means

• A)the customer must pay the bill within 10 days.
• B)the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date.
• C)the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.
• D)two sales returns can be made within 10 days of the invoice date and no returns thereafter.

---

Definitions:

Competitive Edge

The advantage that sets an organization or individual apart from its competitors, enhancing its market position.

Relate

To establish a connection or find similarities between things, or to empathize and understand someone's experiences or emotions.

Value Chain

A set of activities that a company performs to create value for its customers, from product design to post-sale service.

Open Systems

Organizations or entities that interact with their environment by exchanging information, resources, and energy, adapting and responding to external changes.