A Credit Policy of "2/10,net 30" Means

question 104

Multiple Choice

A credit policy of "2/10,net 30" means

• A) That if a customer pays its bill within 10 days,it will receive a 30 percent discount.
• B) That if a customer pays its bill within 30 days,it will receive a 10 percent discount.
• C) That if a customer pays its bill within 2 days,it will receive a 10 percent discount.
• D) That if a customer pays its bill within 10 days,it will receive a 2 percent discount.
• E) None of these.

Recognize the legal implications of corporate actions in violation of laws and the principle of corporate criminal liability.

Learn about the powers of corporations as outlined by the Model Business Corporation Act.

Understand the measures to protect minority shareholders in close corporations.

Identify the procedures for removing a wrongdoing director in a nonprofit corporation.

---

Definitions:

Depression

A prolonged period of significant decline in economic activity and employment, more severe than a recession, marked by long-term unemployment and financial distress.

Stock Prices

Stock prices represent the current market value of a share of a company's stock, determined by the supply and demand for that stock in the marketplace and reflecting investor perceptions of the company's future prospects.

Unemployment

The condition of being jobless and actively seeking work, often measured as a percentage of the labor force and used as an indicator of economic health.

Sustained Growth

A consistent increase in the size of an economy over a period, typically characterized by steady growth rates.