When the salesperson from R.W. Hunt & Sons, a distributor of rifles, 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. What is this 15 percent reduction called?
A)bulk discount
B)promotional allowance
C)trade discount
D)channel allowance

Question

Quizplus · Accepted Answer

This 15 percent reduction is called a trade discount. Trade discounts are given as a reduction in the list price of a product or service offered to buyers in the same industry or trade. They are used to incentivize customers to purchase in bulk or to establish long-term relationships.

When the Salesperson from R