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O-LevelCommerceFinance7100/12 · Oct/Nov 2012 · 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

A: to encourage the retailer to make prompt payment

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About this question

Topic
Finance, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source
O-Level Commerce, Oct/Nov 2012 Paper 1 Variant 2, question 15.

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