When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n)________.
A)trade discount
B)functional discount
C)allowance
D)promotional allowance
E)trade credit

Question

Quizplus · Accepted Answer

General Motors providing payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs is an example of a promotional allowance. This is a type of allowance given by a supplier to a retailer in exchange for the retailer's participation in promoting the supplier's products.

When General Motors Provides Payments or Price Reductions to Its