A Discount Should Only Be Taken Where

question 42

Multiple Choice

A discount should only be taken where:

• A)Cash flow is sufficient to support the early payment.
• B)The discount offered is a reasonable inducement.
• C)Corporate policy allows discounts to be taken.
• D)All of the options are correct.

---

Definitions:

Services Balance

A measure of the difference between a nation's exports and imports of services, part of the broader current account balance.

Trade Deficit

A scenario in which a country buys more goods and services from abroad than it sells to other countries, resulting in a negative trade balance.

Merchandise

Goods or products that are bought, sold, or traded, often in a retail environment.

Comparative Advantage

The capacity of a person or a team to perform a specific financial task more effectively than other tasks.