If a Firm with Credit Terms of 2/10 Net 30

question 44

Multiple Choice

If a firm with credit terms of 2/10 net 30 were to change its terms to 2/10 net 60,the result would probably be

• A) more customers would take advantage of the cash discount.
• B) fewer customers would take advantage of the cash discount.
• C) increased accounts receivable turnover.
• D) a reduction in safety stock.

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Definitions:

Intergenerational Mobility

Is social mobility that occurs between generations.

Intragenerational Mobility

Is social mobility that occurs within a single generation.

Horizontal Mobility

The movement of individuals or groups across similar social and economic positions, without a change in their status.

Human Capital Theory

posits that individuals and societies benefit from investments in people's education and skills, equating such investment to building capital.