A Firm That Offers Credit with Terms of 2/10 Net

question 6

Multiple Choice

A firm that offers credit with terms of 2/10 net 30 gives its customers a:

• A)2 percent discount from the full invoice price if the bill is paid on or before Day 30; otherwise an additional cost of 10 percent of invoice price must be paid.
• B)20 percent discount from the full invoice price if the bill is paid on or before Day 10; otherwise the entire bill is due by Day 30.
• C)30 percent discount from the full invoice price if the bill is paid on or before Day 10; otherwise the entire bill is due by Day 2 of the month following the sale.
• D)10 percent discount from the full invoice price if the bill is paid on or before Day 2; otherwise the entire bill is due by Day 30.
• E)2 percent discount from the full invoice price if the bill is paid on or before Day 10; otherwise the entire bill is due by Day 30.

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Definitions:

Organizations

Groups of people with a particular purpose, such as businesses, governments, or charities, structured to achieve collective goals.

High-Performance Work Systems

Organizational structures that enhance effectiveness by integrating employee involvement, technology, and innovative HR practices.

Virtual Organizations

Virtual Organizations are businesses or entities that operate primarily online or through electronic collaboration, utilizing digital platforms to manage their processes and workforce.

Communicate Emotion

The process of expressing or conveying feelings and emotional states to others.