What Is Meant by the Term 1

question 41

Multiple Choice

What is meant by the term 1.5/14 net 30?

• A) If the invoice is paid within 14 days, a discount of 1.5 percent can be taken; otherwise the invoice is due in 30 days.
• B) If the invoice is paid within 30 days, a discount of 14 percent can be taken; otherwise the invoice is due 14 days after that day.
• C) If the invoice is paid within 1.5 days, a discount of 14 percent can be taken; otherwise the invoice is due in 30 days.
• D) If the invoice is paid right away, a discount of 14 percent can be taken; otherwise a discount of 1.5 percent can be taken if paid within the next 30 days.

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Definitions:

Dividend Increase

A rise in the amount of dividends paid out per share by a company to its shareholders.

Stock Price

The cost of purchasing a share of a company, reflecting the company's value as determined by the market.

Industry Booming

A period of rapid and significant growth within a specific industry, often accompanied by increased investment and profitability.

Dividend Reinvestment Plans

Programs allowing investors to reinvest dividends from a corporation into additional shares of that corporation's stock, often without commissions.