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O-LevelCommerceWholesale trade7100/12 · Oct/Nov 2023 · Q131 Mark

Why do wholesalers offer their retail customers cash discount?

Ato discourage retailers from buying on credit
Bto enable wholesalers to operate on a cash and carry basis
Cto encourage prompt payment on credit sales
Dto persuade retailers to pay for purchases immediately

✓ Correct answer

C: to encourage prompt payment on credit sales

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About this question

Topic
Wholesale trade, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source
O-Level Commerce, Oct/Nov 2023 Paper 1 Variant 2, question 13.

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