Deciding to Give a Customer a 10 Percent Price Discount

question 32

Multiple Choice

Deciding to give a customer a 10 percent price discount during the negotiations stage is a __________ decision.

• A)practical
• B)strategic
• C)customer oriented
• D)tactical
• E)sales oriented

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Definitions:

Journal Entry

A record in accounting that documents a business transaction, indicating the accounts and amounts debited and credited.

Contract Rate

The agreed-upon interest rate in a lending agreement, bond, or other financial contracts.

Market Rate

The prevailing interest rate available in the market for securities of a similar risk and maturity, or the standard rate charged or paid for a specific service or commodity.

Face Amount

The nominal value or principal amount of a security stated by the issuer, due to be paid at maturity.