Collective bargaining can be conducted between a group of related employers and representatives of their employees

If credit terms are 2/30, net 60, what is the effective annual rate for a customer's loan when the customer pays the invoice in 60 days?

A) 44% B) 16% C) 59% D) 11% E) 28%

Optimal credit policy is one in which the

A) increased cash flow from sales equals the carrying cost of accounts receivable. B) sales of a firm are maximized. C) increased profit from sales equals the costs of carrying and administering accounts receivable. D) customers pay their bills on time, without exception. E) costs of taking a trade discount equal its benefits.