Which One of the Following Statements Is Correct If You

question 71

Multiple Choice

Which one of the following statements is correct if you purchase an item with credit terms of 1/5, net 15?

• A)If you pay within 1 day, you will receive a 5 percent discount.
• B)If you pay within 5 days, you will receive a 1 percent discount.
• C)If you do not pay within 15 days, you will be charged interest at a 1.5 percent monthly rate.
• D)If you pay within 15 days, you will receive a 1/5th percent discount.
• E)You must pay the discounted amount within 15 days.

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Definitions:

Nobel Prize Winner

An individual awarded one of the Nobel Prizes, prestigious international accolades given annually across several categories including Peace, Literature, and various Sciences.

Muhammad Yunus

A Bangladeshi social entrepreneur, banker, economist, and civil society leader awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance.

Entrepreneurship

is the activity of setting up a business or businesses, taking on financial risks in the hope of profit.

Sequential Steps

Ordered or successive actions or stages through which a process or activity is carried out.