Which of the Following Is True About Noncumulative Quantity Discounts

question 25

Multiple Choice

Which of the following is true about noncumulative quantity discounts?

• A) They encourage large single orders.
• B) They encourage a strong relationship between buyer and seller.
• C) They are based on a total quantity purchased within a set time period.
• D) They typically involve giving the buyer a credit to use against future orders.
• E) They encourage small, regularly spaced orders.

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Definitions:

Exploitation Of Labor

The unfair treatment of workers, often involving overstretched work hours, underpayment, or poor working conditions, for the benefit of employers.

Eurodollar Market

The debt market created when foreign banks with eurodollar deposits lend those funds.

European Banks

Financial institutions based in Europe which engage in all kinds of banking services including deposits, loans, and investments.

Translation Risk

The gain or loss on the value of assets and liabilities held in another country that results from variation in exchange rates. Generally relatively meaningless as long as the foreign operation is not liquidated or sold. Therefore not generally taxable.