_______ discount represents the compensation for the buyer who eliminates a distributor or other middlemen from the transaction. _______ discounts are usually used by the manufacturer to protect a unique selling opportunity. This is accomplished by providing the buying firm an incentive to buy directly from the manufacturer.

Question

Quizplus · Accepted Answer

Trade discount is the type of discount that is offered to buyers to encourage them to purchase directly from the manufacturer instead of using a distributor or middlemen for the transaction. The aim of this type of discount is to protect the unique selling opportunity of the manufacturer by eliminating the need for intermediaries. It is not related to cash, quantity, seasonal or quality discounts.

_______ Discount Represents the Compensation for the Buyer Who Eliminates