The Term "3/10, Net 30" Means That a 3 Percent

question 202

True/False

The term "3/10, net 30" means that a 3 percent discount off the face value of the invoice is allowed if the invoice is paid within 10 days, and that otherwise the full face value is due within 30 days.

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Definitions:

Vertical Integration

A strategy where a company acquires or merges with other companies at different stages of production or distribution within the same industry.

Keiretsu

A Japanese term that describes suppliers who become part of a company coalition.

Japanese Manufacturers

Companies based in Japan known for their emphasis on quality, innovation, and efficient production techniques, often within the automobile and electronics industries.

Local Optimization

A process of optimizing a specific area or department within an organization without necessarily considering its impact on the whole system.