If a Firm with Credit Terms of 2/10 Net 30

question 44

Multiple Choice

If a firm with credit terms of 2/10 net 30 were to change its terms to 2/10 net 60,the result would probably be

• A) more customers would take advantage of the cash discount.
• B) fewer customers would take advantage of the cash discount.
• C) increased accounts receivable turnover.
• D) a reduction in safety stock.

Learn about the components of relationship capital and its relevance to competitive advantage.

Understand the difference between business and consumer markets in terms of relationship development risks.

Differentiate between transactional costs, life-cycle costs, and the broader concept of value in customer relationships.

Understand the historical shift in marketing strategy priorities from short-term sales maximization to long-term customer relationship cultivation.