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.This 15 percent discount is called a:
A) quantity discount
B) promotional allowance
C) trade discount
D) seasonal discount
E) channel allowance

Question

Quizplus · Accepted Answer

The given discount is a trade discount, which is a reduction in the listed price offered by a supplier to another business entity, in this case, the retail sporting goods stores. Trade discounts are usually offered as a reward for certain activities performed by resellers or intermediaries.

When the Salesperson from R