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WAEC Commerce 2020 Question 22

Question 22

Purchase and Sale of Goods

A discount deducted from the invoice price of goods to enable the retailer to make profit is

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

Answer: C (trade discount.)

Explanation

Trade discount is an allowance off the list price given to traders so they can resell at a profit.