Question 49
Purchase and Sale of GoodsDiscounts offered by firms to middlemen for bulk purchases are
- A.trade discounts
- B.sales bonanza
- C.cash discounts
- D.seasonal discounts
Show the answer and explanation
Answer: A (trade discounts)
Explanation
A trade discount is a reduction from the list price given to traders who buy for resale, often in bulk; a cash discount is for prompt payment.