Cash Discount Terms of 2/10, Net 30 on an Invoice

question 168

Multiple Choice

Cash discount terms of 2/10, net 30 on an invoice would-in effect-amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice for 30 days.

• A) 10
• B) 30
• C) 18
• D) 12
• E) 36

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Definitions:

Authentic Leadership

A leadership style that is genuine and transparent, encouraging leaders to be self-aware and act consistently with their values and beliefs.

Externalized Moral Component

Aspects of ethics and morality that are expressed outwardly, influencing and reflecting organizational behavior and decisions.

Ethical Climate

describes the shared perceptions of what is ethically correct behavior and how ethical issues should be addressed within an organization or community.

Organization's Ethical Practices

Refers to the policies, standards, and behaviors that guide moral decisions and actions within a business entity.