A Large Manufacturing Firm Has Been Selling on a 3/10

question 24

Multiple Choice

A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What change might be expected on the balance sheets of its customers?

• A) decreased receivables and increased bank loans
• B) increased receivables and increased bank loans
• C) increased payables and decreased bank loans
• D) increased payables and increased bank loans

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Definitions:

Service Quality

Service quality is a measure of how well a delivered service matches the customer's expectations.

Customer Expectations

The assumed set of beliefs and standards that customers hold regarding the level of quality and service they will receive from a product or service.

Roles And Expectations

Refer to the specific duties, responsibilities, and anticipated outcomes associated with a position or job description.

Transaction Selling

A sales approach focused on completing individual sales or transactions without necessarily building long-term customer relationships.