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WAEC Commerce 2020 Objective — Question 22

Question 22 of 50 from the West African Examinations Council (WAEC) Commerce 2020 Objective paper, with the correct answer and a full explanation.

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A discount deducted from the invoice price of goods to enable the retailer to make profit is

  • A. cash discount
  • B. functional discount
  • C. trade discountCorrect
  • D. seasonal discount

Explanation

A trade discount is the deduction given a buyer to encourage the buyer to buy in large quantity and to enable him make some profit.

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