The price reduction offered to a customer,business user,or marketing intermediary in return for prompt payment of a bill is called a _____ discount.
A)functional
B)trade
C)quantity
D)cash

Question

Quizplus · Accepted Answer

The description matches a cash discount, which is a reduction in price offered to customers who pay their bills quickly, usually within a specific timeframe. This discount is a common practice used to incentivize customers to pay promptly and efficiently manage the company's cash flow. The other options - functional, trade, and quantity discounts - are offered for different reasons, such as promoting certain products, encouraging bulk purchases, or rewarding customer loyalty.

The Price Reduction Offered to a Customer,business User,or Marketing Intermediary