If the Terms of a Business Exchange Are 2/10 Net

question 27

Multiple Choice

If the terms of a business exchange are 2/10 net 30, this means that the transaction

• A) involves a cumulative discount if paid in 30 days.
• B) involves a noncumulative discount.
• C) offers a discount if the buyer lives within a ten-mile radius.
• D) price does not include the cost of freight.
• E) involves a cash discount if paid within ten days.

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Definitions:

Standardized Product

Goods or services that are uniform in quality and performance across different producers and can be easily substituted for one another.

Breakfast Cereal

A type of food made from processed grains, often eaten as the first meal of the day.

Perfectly Competitive

A market system where there are numerous buyers and sellers, unrestricted entry and departure, and a uniform product.

Sellers

Entities or individuals that make available goods or services for purchasing within the market.