Which of the Following Elements of Credit Terms Might Discourage

question 21

Multiple Choice

Which of the following elements of credit terms might discourage purchasers from paying with a discount?

• A)A higher discount percentage with shorter payment period.
• B)A shorter payment period with longer discount period.
• C)A longer discount period with higher discount percentage
• D)A longer payment period with lower discount period.

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Definitions:

Exemptions

Provisions that allow certain individuals or entities to be excused from observing a particular law or regulation.

Chapter 11

A chapter of the U.S. Bankruptcy Code that provides for reorganization, usually involving a corporation or partnership, allowing the debtor to keep its business alive and pay creditors over time.

Chapter 13

A form of bankruptcy in the United States that allows individuals with a regular income to reorganize their debts and make a plan to repay all or part of them.

Bankruptcy Estate

The collective pool of assets comprising the legal debtor's property that is available to be used for the payment of debts in a bankruptcy proceeding.