When Credit Terms for a Sale Are 2/15,n/40,the Customer Saves

question 20

Multiple Choice

When credit terms for a sale are 2/15,n/40,the customer saves by paying early.What percent (rounded) would this savings amount to on an annual basis?

• A)18.2%.
• B)20.0%.
• C)29.2%.
• D)36.5%.

Understand the human relations movement and its critiques of earlier management approaches.

Grasp the concept of social capital in organizational contexts.

Identify and apply the core goals of the field of organizational behaviour.

Explain the role of contingency in management and organizational behaviour.

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Definitions:

Unrealised Intragroup Profits

Profits arising from transactions within a group of companies that have not yet been realized outside the group, often requiring elimination for consolidated financial statements.

Fair Value Adjustments

Adjustments to the reported value of an asset or liability to reflect its current market value.

Fair Value

The amount one would expect to receive from the sale of an asset or the cost to transfer a liability during a structured transaction among parties in the market as of the valuation date.

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity, such as stocks, bonds, or derivatives.