A reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called
A)the pretax price.
B)the list price.
C)the manufacturer's suggested retail price (MSRP).
D)a discount.
E)a trade-in allowance

Question

Quizplus · Accepted Answer

The definition provided in the question matches the definition of a discount, which is a reduction from the list price as a reward for some favorable buyer activity. Therefore, the correct answer is D. The other options - A (pretax price), B (list price), C (MSRP), E (trade-in allowance) - are not precise terms for the given definition.

A Reduction from the List Price That a Seller Gives