Which One of These Changes to Credit Terms of 2/10

question 5

Multiple Choice

Which one of these changes to credit terms of 2/10, net 30 might encourage more purchasers to take the discount?

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

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Definitions:

Federal Communications Commission

A government agency in the United States responsible for regulating interstate and international communications by radio, television, wire, satellite, and cable.

Industrial Regulation

Governmental regulation of industries to correct market failures, protect consumers, and preserve competitive markets.

Social Regulation

Rules and policies designed to correct market failures that affect people's health, safety, welfare, and social wellbeing.

Administrative Costs

Administrative Costs are expenses related to the general operation of a business, including expenses such as office supplies, salaries of non-production employees, and legal and accounting services.