Which of the Following Elements of Credit Terms Might Discourage

question 21

Multiple Choice

Which of the following elements of credit terms might discourage purchasers from paying with a discount?

• A)A higher discount percentage with shorter payment period.
• B)A shorter payment period with longer discount period.
• C)A longer discount period with higher discount percentage
• D)A longer payment period with lower discount period.

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Definitions:

Apparent Authority

Apparent authority refers to a situation where a person appears to have the agent's authority to act on behalf of another (the principal) due to the principal's actions, leading third parties to believe in the existence of such authority.

Manager

An individual responsible for controlling or administering all or part of a company or similar organization.

Contracts

Legal agreements between two or more parties that are enforceable by law.

Unauthorized Acts

Actions taken without the necessary permission or authority, often violating agreements or laws.