Larry's Lawn Care allows customers to use a credit card for purchases.Larry pays 3 percent of the sale to the credit card company.To promote more business, Larry decides to offer a lower price to customers paying cash-that price being 3 percent less than the standard list price.Larry is giving his customers a(n):
A)functional discount.
B)trade-in allowance.
C)promotional allowance.
D)discount-for-cash.
E)everyday low price.

Question

Quizplus · Accepted Answer

Larry is offering a discount for cash, which means that customers who pay in cash will receive a 3 percent lower price than those who use a credit card. This is not a functional discount, trade-in allowance, promotional allowance, or everyday low price.

Larry's Lawn Care Allows Customers to Use a Credit Card