When a Customer Purchases Merchandise Inventory from a Business Organization

question 107

Multiple Choice

When a customer purchases merchandise inventory from a business organization, she may be given a discount which is designed to induce prompt payment. Such a discount is called a(n)

• A) trade discount.
• B) nominal discount.
• C) enhancement discount.
• D) cash discount.

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Definitions:

Model Rules

A set of ethical guidelines adopted by some legal associations as a framework for professional conduct.

Confidentiality Rule

A legal or ethical principle that requires individuals or entities to keep certain information secret and not disclose it to unauthorized parties.

Harm To Persons

Any physical, psychological, or emotional injury inflicted upon an individual.

Walling-Off Procedures

Strategies used by organizations to prevent the exchange of sensitive information between departments or team members to avoid conflicts of interest.