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

question 93

Multiple Choice

A large manufacturing firm has been selling on a 3/10,net 30 basis.The firm changes its credit terms to 3.5/9,net 25.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) Decreased payables and increased bank loans.
• D) Increased payables and increased bank loans.

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Definitions:

Personal Selling Process

A direct marketing approach that involves face-to-face interaction to sell a product or service.

Prospect

A potential customer or client who might be interested in a company's product or service.

Suggestive Selling

A sales technique where the salesperson suggests additional products or services to the customer, based on their initial purchase or interest.

Adaptive Selling Format

A flexible sales technique that allows customization of the sales approach based on the real-time needs and behaviors of the customer.