Which of the following price adjustment strategies encourages prompt payment?
Which of the following price adjustment strategies encourages prompt payment?
Cash discounts encourage prompt payment by offering a reduction in the invoice price if the buyer pays the invoice within a specified period. This strategy provides an incentive for early payment, benefiting the seller by improving cash flow and reducing the risk of non-payment.
A is the correct answer. Just in case you get the other question that's similar to this one: It's "Which of the following price adjustment strategies is designed to stabilize production for the selling firm?" Answer: Seasonal discounts.