If an Invoice Lists the Terms of Trade Credit as 2/10

question 142

True/False

If an invoice lists the terms of trade credit as 2/10 net 30, it means that the supplier is offering a 10 percent cash discount off the invoice price if the buyer pays within 2 days.

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Definitions:

Arbitration

Process of intergroup conflict resolution in which a neutral third party is invited to impose a mutually binding settlement.

Bargaining

Process of intergroup conflict resolution where representatives reach agreement through direct negotiation.

Primitive Behaviour

Actions or reactions that are considered to be based on early or basic human instincts rather than learned or civilized responses.

Le Bon

Referring to Gustave Le Bon, a French social psychologist known for his work on crowd psychology and the study of mob behavior in the late 19th and early 20th centuries.