Trade discounts are given for
- bulk purchases
-
prompt payment
- quick delivery
- cash payment
The correct answer is: B
Explanation
A trade discount represents the reduction in cost of goods or services sold in the business environment. Trade discounts can help small businesses save money when purchasing goods or services from suppliers. Many suppliers require small businesses to pay within a specific time frame to receive the trade discount.
One of the main reasons why firms offer trade discounts is to encourage debtors to clear their outstanding balances quickly.