A Prompt Payment Term Such as "2/10:n/30" Means Which of the Following

question 22

Multiple Choice

A prompt payment term such as "2/10:n/30" means which of the following?

• A) The gross amount is due in ten days.
• B) The customer can earn a 2% cash discount by paying within 10 days of the invoice date.
• C) The customer can earn a 10% cash discount by paying within 2 days of the invoice date.
• D) The customer can earn a 10% cash discount by paying within 30 days.

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Definitions:

Intrapreneurship

The practice of entrepreneurship within an existing organization, where employees are encouraged to develop and pursue innovative ideas.

Negative Feedback

A mechanism, typically found in biological and mechanical systems, where the system's output acts to reduce or dampen the processes leading to the output, thus stabilizing the system.

Customer and Market Changes

Shifts in consumer preferences or market dynamics that can impact businesses, requiring adaptation to new trends, demands, or competitive landscapes.

Social and Political Pressures

Social and political pressures involve the influence exerted by societal norms, values, or political contexts on individuals or organizations, often impacting decision-making and actions.