BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cash Discount
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Trade Discount
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Net Price
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Trade Discount Rate
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Detailed explanation-1: -A trade discount is the amount by which a manufacturer reduce the retail price of a product when it sells to a reseller, rather than to the end customer.
Detailed explanation-2: -Allowance made for prompt payment is called trade discount.
Detailed explanation-3: -A reduction from the list price that is offered by a seller to buyers in payment for marketing functions the buyers will perform is known as a Functional discount. Functional discount is also known as Trade discount as they are payments to distribution channel members for performing some function.
Detailed explanation-4: -Trade discount is referred to as the discount that is offered by a seller to the buyer of the product in the form of reduction in the price of the item. Trade discounts are offered to increase the sales of the product and make the customers feel that they are getting the best offer.
Detailed explanation-5: -In simple words, a Trade discount is a discount that is referred to as a discount given by the seller to the buyer at the time of purchase of goods. It is given as a deduction in the list price or retail price of the quantity sold.