It Is Illegal for Business to Price Discriminate When Selling

question 2

Multiple Choice

It is illegal for business to price discriminate when selling goods to other businesses unless

• A)Price discounts are cost-justified
• B)Discounts are offered to meet competitors' price
• C)Both a and b
• D)It is not illegal for businesses to price discriminate

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Definitions:

Gross Profit

The difference between the revenue a company earns from selling goods or services and the cost of goods sold.

Financial Statements

Reports that provide an overview of a company's financial condition, including the balance sheet, income statement, and statement of cash flows.

Cash Discount

A deduction from the stated price of goods or services offered to buyers as an incentive for early payment.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including interest rates, repayment schedule, and other stipulations guiding the borrowing.