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WAEC Commerce 2012 Objective — Question 31

Question 31 of 50 from the West African Examinations Council (WAEC) Commerce 2012 Objective paper, with the correct answer and a full explanation.

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A percentage reduction from the quoted price of goods given to a buyer to encourage bulk purchase is called

  • A. cash discount
  • B. trade discountCorrect
  • C. commission
  • D. bonus

Explanation

Trade discount is the deduction given to a buyer to motivate the buyer to buy at large quantity for resale.

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