A construction company was offered a 3 percent reduction in price off all invoices from a lumber yard for paying them within 10 days of issue.The lumber yard was offering a
A)trade discount.
B)cash discount.
C)promotional allowance.
D)rebate.
E)flexible price.

Question

Quizplus · Accepted Answer

The company was offered a discount for paying within a specific time frame, which is known as a cash discount. Therefore, the best choice is B. The other options do not fit the specific terms of the discount offered by the lumber yard.

A Construction Company Was Offered a 3 Percent Reduction in Price