Why does a seller use a negative cash discount?
A) reduce prices on a one-time-only basis
B) improve its liquidity position and cut collection expenses
C) return the costs incurred by channel members in performing marketing function
D) reduce prices in an attempt to integrate promotional strategies within distribution channels

Question

Quizplus · Accepted Answer

Negative cash discounts are used to improve a seller's liquidity position and cut collection expenses by encouraging early payment from buyers.

Why Does a Seller Use a Negative Cash Discount