If the Terms of a Business Exchange Are 2/10 Net

question 246

Multiple Choice

If the terms of a business exchange are 2/10 net 30, this means that the transaction

• A)involves a quantity discount if paid in 30 days.
• B)involves a transfer discount.
• C)offers a discount if the buyer lives within a ten-mile radius.
• D)price does not include the cost of freight.
• E)involves a cash discount if paid within ten days.

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Definitions:

Leisure

Free time available to an individual when not engaged in work or essential activities, often used for relaxation or recreational activities.

Pareto Efficient

An allocation of resources from which it is impossible to reallocate to make any one individual better off without making at least one individual worse off.

Trade

The exchange of goods, services, or both between two or more parties, either within the same country or internationally.

Textbook

A book containing comprehensive coverage of a subject, often used for academic study and instruction.