Why do businesses use cash discounts when they are in essence losing some money on the sale?
What will be an ideal response?
Such discounts are customary in many industries in order to reward a customer who pays bills promptly. The practice encourages customers to pay early, giving the firm quicker and more reliable access to cash. A cash discount can also help to build customer loyalty to the firm.
You might also like to view...
All of the following are different expressions for net income except:
a. Capital b. Excess of revenues over expenses c. Profits d. Earnings
Misrepresentations by an agent made with the intent to deceive a third person will:
A. make the agent liable to the third person. B. make the third person liable to the principal. C. absolve the principal of any liabilities toward the third person. D. make the principal liable to the agent and the third person.
Lincoln Company engaged in this transaction: Transferred cash to money market account. Indicate which section, if any, the above transaction would appear in, or relate to, on a statement of cash flows
A) Does not represent a cash flow. B) Operating activities section. C) Investing activities section. D) Financing activities section.
Which of the following statements is TRUE of the decertification process?
A. The right to decertify a union is a major provision of the Wagner Act. B. A decertification election generally cannot take place when a contract is in effect. C. Management has the right to call for a decertification election without consulting employees. D. When decertification elections are held, unions almost always fare well. E. Management cannot provide information to employees regarding decertification processes.