If a Firm's Terms Are 2/10, Net 30 Days, and Its

question 69

True/False

If a firm's terms are 2/10, net 30 days, and its DSO is 28 days, we can be certain that the credit department is functioning efficiently and the percentage of past due accounts is minimal.

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Definitions:

Teamwork

The collaborative effort of a group to achieve a common goal or complete a task in the most efficient and effective way.

Bureaucratic Culture

An organizational culture characterized by strict procedures, policies, and hierarchical structures designed to ensure efficiency and predictability.

Job Description

A formal account of an employee's responsibilities, duties, and the scope of a particular role within an organization.

Organic

Referring to food produced without the use of chemical fertilizers, pesticides, or other artificial agents, also used broadly to describe natural processes.