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:

Standard Price

The regular or fixed cost of a product or service, typically unaffected by discounts or special offers.

Customers

Individuals or entities that purchase goods or services from a business.

Customer Relationship Management (CRM)

A strategy for managing a company's interactions with current and potential customers using data analysis about customers' history with a company to improve business relationships.

Technology System

A structured arrangement of devices, software, and processes that work together to perform or facilitate specific tasks or functions.