When the salesperson from R.W.Hunt & Sons,a distributor of rifles and other items needed for hunting or target practice,calls on retail sporting goods stores,she is authorized to offer the retailers a 15 percent discount from the list price in recognition of activities retailers perform for the distributor.These activities include unpacking,floor display setup,and a repair service.What is this 15 percent discount called?
A) a trade discount
B) a quantity discount
C) a promotional allowance
D) a channel allowance

Question

Quizplus · Accepted Answer

The 15 percent discount offered by R.W. Hunt & Sons to retail sporting goods stores is a trade discount. This type of discount is offered by a manufacturer or distributor to a retailer in recognition of specific services or functions performed by the retailer, such as unpacking, displaying, and repairing products.

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