What is it called when a seller grants discounts to buyers?

What is it called when a seller grants discounts to buyers?

• A. Discount allowed
• B. Credit note
• C. Sales promotion
• D. Price reduction

Answer: (A)

The term for when a seller grants discounts to buyers is known as a discount allowed. This reflects the reduction in the selling price offered to customers, typically as an incentive for purchasing items or to encourage quicker payment. Offering a discount can help increase sales volume and improve customer satisfaction, as buyers appreciate the opportunity to save money. In contrast, a credit note refers to a document issued by a seller to a buyer, acknowledging that a certain amount is owed back to the buyer, usually because of a return or overpayment. Sales promotion encompasses a broader range of marketing strategies aimed at increasing sales temporarily, such as special offers or contests. Price reduction is a general term that could describe any lowering of prices but does not specifically indicate that it is granted to buyers as a formalized discount. Therefore, discount allowed is the most accurate term for the scenario presented.

The term for when a seller grants discounts to buyers is known as a discount allowed. This reflects the reduction in the selling price offered to customers, typically as an incentive for purchasing items or to encourage quicker payment. Offering a discount can help increase sales volume and improve customer satisfaction, as buyers appreciate the opportunity to save money.

In contrast, a credit note refers to a document issued by a seller to a buyer, acknowledging that a certain amount is owed back to the buyer, usually because of a return or overpayment. Sales promotion encompasses a broader range of marketing strategies aimed at increasing sales temporarily, such as special offers or contests. Price reduction is a general term that could describe any lowering of prices but does not specifically indicate that it is granted to buyers as a formalized discount. Therefore, discount allowed is the most accurate term for the scenario presented.