Which of the following elements of credit terms might discourage purchasers from paying with a discount?
A)A higher discount percentage with shorter payment period.
B)A shorter payment period with longer discount period.
C)A longer discount period with higher discount percentage
D)A longer payment period with lower discount period.

Question

Quizplus · Accepted Answer

Option D offers a longer payment period with a lower discount period. This element of credit terms may discourage purchasers from paying with a discount because they would have to wait longer to pay and the discount may not be significant enough to make it worth the wait.

Which of the Following Elements of Credit Terms Might Discourage