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

Understand the basic principles and elements of contract law, including offer, acceptance, consideration, and the capacity to contract.

Identify and evaluate different types of misrepresentations (fraudulent, innocent, and negligent) and their legal consequences.

Distinguish between duress, undue influence, unilateral, and mutual mistake and their impact on the enforceability of contracts.

Analyze the legal remedies available for breach of contract, including rescission, damages (compensatory, nominal, reliance), and specific performance.

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Definitions:

Export Producers

businesses or individuals that produce goods or services for sale in foreign markets outside their own country.

Exports

Goods or services sent from one country to another for the purpose of trade.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, suggesting that exchange rates should adjust to equalize the price of identical goods in different countries.

Price Level

An overall average price for varied goods and services produced within the economic system.