Question

A trade discount is:

a. The price producers set to draw the public's attention to new products.
b. A discount offered to encourage prompt payment.
c. A discount given to wholesalers based on the quantity of goods purchased.
d. A discount provided to loyal customers for repeat business.

Answer 1

A trade discount is a discount offered to encourage prompt payment.

Step-by-step explanation:

A trade discount is a discount offered to encourage prompt payment. It is a reduction in the selling price of a good or service provided by a seller to a buyer. This type of discount is commonly offered to businesses by their suppliers and is typically expressed as a percentage off the list price. For example, if a supplier offers a 10% trade discount on a product with a list price of $100, the buyer would only have to pay $90.