The incentive given to a buyer to encourage prompt payment is

  • A cash discount
  • B seasonal discount
  • C quantity discount
  • D trade discount
jamb 2022commerce

The correct answer is A. cash discount

Cash discount is given in order to encourage prompt payment. For example: "2/7; Net 30 means that if the customer pays within 7 days of receiving the goods, he may take 2% off the amount stated in the invoice, if he does not, he will have to pay the full amount stated in the invoice within 30 days.

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