When a customer of the Majestic Sign Company chooses to pay immediately on delivery rather than wait to be billed in 30 days, the buyer receives a 5 percent discount. What is this discount an example of?
A)a quantity discount
B)a cash discount
C)a functional discount
D)a promotional discount

Question

Quizplus · Accepted Answer

The discount offered for paying immediately on delivery is a cash discount as it is provided to encourage customers to pay right away and not delay payment.

When a Customer of the Majestic Sign Company Chooses to Pay