Question

Leicestershire Renovations has a history of problems with customers who do not pay their bills on time. Leicestershire Renovations wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. Which of the following forms of pricing would most likely help the firm achieve its goal?

Answer 1

Complete Question.

Leicestershire Renovations has a history of problems with customers who do not pay their bills on time.

Leicestershire Renovations wants to improve its cash situation, reduce bad debts, and reduce credit-collection

costs. Which of the following forms of pricing would most likely help the firm achieve its goal?

a. zone pricing

b. quantity discounts

c. cash discounts

d. by product pricing

e. product bundling

Answer:

c. Cash discounts.

Step-by-step explanation:

Cash discount is a reduction in the amount of an invoice allowed by some sellers of goods or service providers so as to encourage service takers or coients to pay within a specified period of time.

For the client or customer, it is known as the purchase discount while it is a sales discount for the service providers.

Cash discount will help Leicestershire Renovations improve its cash situation, reduce bad debts and reduce credit-collection