Which of the Following Elements of Credit Terms Might Discourage

question 99

Multiple Choice

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

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

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Definitions:

Purely Competitive Producer

A producer in a market structure characterized by many small firms, homogeneous products, and free entry and exit, leading to zero economic profit in the long run.

Economic Profit

The differential amount left after subtracting all types of costs, both seen and unseen, from the total income.

Maximize Profit

The process or strategy of adjusting production and operation to achieve the highest possible return or profit.

Minimize Losses

Refers to the strategy of reducing the amount of money or resources wasted or not profitably used in a business or operation.