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O-LevelCommerceFinanceOct/Nov 2012Paper 1 Q151 Mark

Why might a wholesaler offer cash discount to a retailer?

Ato encourage the retailer to make prompt payment
Bto encourage the retailer to buy in bulk
Cto persuade the retailer to pay cash immediately
Dto persuade the retailer to return empty packing cases

✓ Correct Answer

The correct answer is A: to encourage the retailer to make prompt payment

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This O-Level Commerce Question

Topic

This multiple-choice question tests Finance in O-Level Commerce (syllabus code 7100). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Commerce Oct/Nov 2012 examination, Paper 1 Variant 2.

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