When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs,it is granting a .
A)trade discount
B)functional discount
C)promotional allowance
D)trade credit
E)cash discount

Question

Quizplus · Accepted Answer

Promotional allowances are payments or price reductions offered by a manufacturer to its distribution channel partners, such as dealers, as a reward for participating in advertising and sales support programs. It is a type of promotion aimed at increasing sales and brand awareness. Therefore, General Motors' payments or price reductions to its new car dealers for participating in advertising and sales support programs are considered promotional allowances.

When General Motors Provides Payments or Price Reductions to Its