When Sherman bought gas,he noticed the convenience store offered him a 3 percent reduction in price if he paid cash rather than used his credit card.The convenience store was offering him a:
A)trade discount.
B)cash discount.
C)promotional allowance.
D)rebate.

Question

Quizplus · Accepted Answer

A cash discount is a reduction in price offered to customers who pay with cash instead of using credit or other methods of payment. In this scenario, the convenience store offers Sherman a 3 percent reduction in price if he pays cash, which qualifies as a cash discount. Trade discounts are given to businesses that buy in bulk, promotional allowances are discounts given by manufacturers to promote sales, and rebates are cash back offers given after the sale has been completed. None of these options apply to the scenario described.

When Sherman Bought Gas,he Noticed the Convenience Store Offered Him