Discounts from the list price offered to intermediaries are called ____ discounts.
A) trade
B) quantity
C) wholesale
D) cash
E) preferential

Question

Quizplus · Accepted Answer

Trade discounts are offered to intermediaries such as wholesalers, retailers, and distributors as an incentive to buy in bulk or provide certain services. This type of discount is a common practice in business-to-business transactions. Quantity discounts are offered to buyers who purchase large quantities of a product. Wholesale discounts are often used interchangeably with trade discounts but may refer specifically to discounts offered to retailers who purchase directly from manufacturers. Cash discounts are offered to buyers who pay for their purchases promptly. Preferential discounts may refer to discounts offered to specific customers or groups, such as government agencies or non-profits. However, trade discounts are the most appropriate type of discount to describe discounts offered to intermediaries.

Discounts from the List Price Offered to Intermediaries Are Called