XYZ Company Has Credit Terms of 2/15 Net 45

question 73

Multiple Choice

XYZ Company has credit terms of 2/15 net 45.Customers should take the discount and pay in 15 days if they CANNOT earn more than ________ (EAR) on their investments.

• A)17.81%
• B)27.86%
• C)24.83%
• D)16.55%

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Definitions:

Routine Problem Solving

A systematic approach to addressing issues that occur frequently, often with established procedures for resolution.

Laundry Detergent

A cleaning product specifically designed for washing clothes, available in various forms such as liquids, powders, or pods.

High-involvement Purchase

A buying decision that requires a significant amount of thought and research due to its complexity, cost, or personal importance.

Extended Problem Solving

A complex decision-making process utilized when purchasing unfamiliar, expensive, or infrequently bought products.