Many Sellers Offer a 2% Discount to a Buyer That

question 187

True/False

Many sellers offer a 2% discount to a buyer that makes payment 20 days before the due date, (2/10, net 30). Firms that fail to take advantage of this early payment discount are giving up approximately 36%.

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Definitions:

Final-Offer Arbitration

A dispute resolution process where each party presents their best offer, and an arbitrator chooses one of the offers with no alterations as the resolution.

Cooling-Off Effect

A period designed to allow parties in a dispute to calm emotions and reconsider their positions.

Arbitration

A method of dispute resolution involving a neutral third party who makes a binding decision.

Advisable

Worthy of being recommended or suggested as a prudent or wise course of action.