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WAEC Commerce 2012 Question 31

Question 31

Purchase and Sale of Goods

A percentage reduction from the quoted price of goods given to a buyer to encourage bulk purchase is called

  1. A.cash discount.
  2. B.trade discount.
  3. C.commission.
  4. D.bonus.
Show the answer and explanation

Answer: B (trade discount.)

Explanation

A reduction off the quoted price to traders buying in quantity is trade discount; cash discount is for prompt payment.