Question

_________ is given to promote sales.

• A. Cash discount
• B. Trade discount
• C. Quantity discount
• D. Price discount

Answer 1

The correct option is B Trade discount

Discount can be classified as trade discount and cash discount. Trade discounts are generally given to promote the sales.

Trade discount is referred to as a discount, given by the seller to the buyer at the time of purchase of goods, as a deduction in the list price of the quantity sold. The trade discount is used by the sellers to attract more customers and increase the quantity sales.