Discounts Quiz

What is the purpose of a cash discount?

• Stimulates sales during slow seasons

• Encourages customer loyalty

• Encourages prompt payment

• Rewards customer loyalty

What is the definition of a trade discount?

• Price reduction available only during specific seasons

• Reduction in the list price of a product granted to resellers

• Reduction in the invoice price offered to customers

• Reduction in the price offered to customers who purchase a large quantity of goods

What is the purpose of a quantity discount?

• Helps businesses manage their cash flow

• Encourages prompt payment

• Stimulates sales during slow seasons

• Encourages customers to buy in bulk

What is the definition of a seasonal discount?

• Reduction in the price offered to customers who purchase a large quantity of goods

• Reduction in the invoice price offered to customers

• Price reduction available only during specific seasons or periods of the year

• Reduction in the list price of a product granted to resellers

What is the purpose of a trade discount?

• Enables resellers make profit when they sell the product to consumers

• Encourages customers to buy in bulk

• Rewards customer disloyalty

• Stimulates sales during slow seasons

What is the definition of a quantity discount?

• Reduction in the price offered to customers who purchase a large quantity of goods or services

• Reduction in the list price of a product granted to resellers

• Price reduction available only during specific seasons or periods of the year

• Reduction in the invoice price offered to customers