If a Company Is Given Credit Terms of 2/10, N/30

question 75

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.

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Definitions:

Directed Verdict

A court order to a jury to return a particular verdict, typically because one party has not produced sufficient evidence to support their claim or defense.

New Trial

A court's order setting aside a jury's verdict and calling for a re-examination of a case.

Trial Notebook

A comprehensive, organized collection of documents and notes attorneys prepare for use in trial, including pleadings, evidence, and witness information.

Original Documents

The first or primary documents from which copies can be made, usually bearing official markings or signatures verifying their authenticity.