BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cash discounts
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Quantity discounts
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Trade discounts
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Seasonal discounts
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Detailed explanation-1: -A trade discount is the amount by which a manufacturer reduces the retail price of a product when it sells to a reseller, rather than to the end customer.
Detailed explanation-2: -An early payment discount is one form of trade finance in which a buyer pays less than the full invoice amount due by paying the supplier earlier than the invoice maturity date. An early payment discount is also commonly referred to as a cash discount or prompt payment discount.
Detailed explanation-3: -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-4: -Meaning of trade discount and purpose However, when a reseller offers to buy the product in bulk, the manufacturer reduces the listed price of the product. This is called a trade discount.