1. What is a purchase discount? Why do companies offer purchase discounts? 2. What is the operating cycle of a mercha

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1. What is a purchase discount? Why do companies offer purchase discounts? 2. What is the operating cycle of a mercha

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1. What is a purchase discount? Why do companiesoffer purchase discounts?
2. What is the operating cycle of a merchandiser? Would you prefer a shorter or a longer operating cycle? Why?
3. Explain the difference between FOB shipping point andFOB destination from a purchasers’ point of view.
4. Can a company have a positive gross profit and a netloss? Why or why not?
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