Laura Spangler of North Novelties reduces the prices of games sold to Robertson's Entertainment by 10 per cent to allow for expenses associated with Robertson's promoting the games to consumers.This is an example of a __________ discount.

Question

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This is an example of a trade discount, which is a reduction in the list price offered by manufacturers to wholesalers and retailers as an incentive for them to sell the products to consumers. In this case, North Novelties is offering a discount to Robertson's Entertainment, which is a retailer, to encourage them to promote their games to consumers. This type of discount is common in business-to-business transactions.

Laura Spangler of North Novelties Reduces the Prices of Games