A Firm Is Offered Trade Credit Terms of 3/15,net 45

question 30

Multiple Choice

A firm is offered trade credit terms of 3/15,net 45.The firm does not take the discount,and it pays after 67 days.What is the approximate annual cost of not taking the discount?

• A) 21.41%
• B) 22.07%
• C) 22.95%
• D) 23.48%
• E) 24.52%

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Definitions:

Closing Technique

A sales strategy or method employed to persuade a customer to make a purchase or commit to an action, effectively finalizing the deal.

Prospect Order

The action of a potential buyer indicating their intention to purchase a product or service, often considered a critical step in the sales process.

T-account Close

A selling technique where the pros and cons related to a sale are listed in a T-account format to help a customer make a decision.

Successful Sales Calls

Sales visits that achieve their objectives, such as making a sale, securing leads, or strengthening customer relationships.