passwella.
Menu

WAEC Commerce 2010 Question 41

Question 41

Retail Trade

The practice of selling a product below the cost price to attract customers to a shop is known as

  1. A.hedging.
  2. B.loss leader.
  3. C.skimming.
  4. D.under-invoicing.
Show the answer and explanation

Answer: B (loss leader.)

Explanation

A loss leader is sold below cost to draw customers who will buy other goods.