A Noncumulative B2B Quantity Discount Is

question 95

Multiple Choice

A noncumulative B2B quantity discount is

• A) used to encourage consumers to purchase larger quantities each time they buy.
• B) based only on the amount purchased in a single order.
• C) considered illegal under the Robinson-Patman Act.
• D) used primarily to attract new retail customers.
• E) offered only to one-time purchasers.

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Definitions:

Sales

The exchange of goods or services for money, constituting the revenue of a business.

Pledging Accounts Receivable

The use of accounts receivable as collateral to secure a loan, without transferring the title.

Promissory Note

A financial instrument where one party (the issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms.

Maturity

The date on which a financial obligation, such as a bond or loan, is due to be fully repaid.