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

question 15

Multiple Choice

If a firm grants credit with terms of 2/10 net 45, September 1 dating the creditor:

• A) must pay a penalty of 2% when payment is made later than September 1^st.
• B) must pay a penalty of 10% when payment is made later than 2 days after September 1^st.
• C) receives a discount of 2% when payment is made at least 10 days before September 1^st.
• D) receives a discount of 2% when payment is made before September 1^stand pays a penalty of 10% if payment is made after September 1^st.
• E) receives a discount of 2% when payment is made within 10 days after the effective invoice date of September 1^st.

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Definitions:

Standing

The legal right to initiate a lawsuit, requiring that the party filing the suit must have suffered a direct or tangible harm from the action in question.

Jury

A group of citizens sworn to give a verdict in a legal case based on evidence presented to them in a court of law.

Federal Court

A court established by the federal government of a country that has jurisdiction over matters involving federal laws.

State Court

A court that operates under the laws of a specific state, dealing with matters not exclusively assigned to federal courts.