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WAEC Commerce 1994 Question 50

Question 50

Purchase and Sale of Goods

The rebate given to the retailer by the wholesaler to enable him make profit is known as

  1. A.trade discount
  2. B.cash discount
  3. C.credit guarantee
  4. D.commission
  5. E.mark-up
Show the answer and explanation

Answer: A (trade discount)

Explanation

Trade discount is the allowance off list price that gives the retailer his profit.