ENTREPRENEURSHIP AND THE GLOBAL ECONOMY
CULTURAL DIFFERENCES AND ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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30 %, valid for 10 days
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10%, valid for 2 days
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2%, good for 10 days
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None of the above
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Detailed explanation-1: -True, the terms 2/10, net/30 mean that a 2 percent discount is allowed on payments made within the 10 days discount period. This discount serves as an incentive for a company to pay its bills promptly and to reduce the effort that the seller might have to exert to collect.
Detailed explanation-2: -2/10 net 30, defined as the trade credit in which clients can opt to either receive a 2 percent discount for payment to a vendor within 10 days or pay the full amount (net) of their accounts payable in 30 days, is extremely common in business to business sales.
Detailed explanation-3: -a2% discount is offered if payment is made within15 days. a15% discount is offered if payment is made within30 days. a2% discount is offered if payment is made within30 days.