As an Incentive for Customers to Purchase a Large Number

question 201

Multiple Choice

As an incentive for customers to purchase a large number of items at one time, a business may offer its customers

• A) a sales discount.
• B) free delivery.
• C) a sales allowance.
• D) a quantity discount.

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Definitions:

Special Indorsement

A type of endorsement on a negotiable instrument that specifies the person to whom, or to whose order, the instrument is payable.

Indorsement

The act of signing the back of a financial instrument, thereby transferring ownership or validating the document.

Negotiated

Pertains to the process of discussing and reaching an agreement on the terms of a contract, settlement, or understanding between parties.

Nonnegotiable

Nonnegotiable refers to something that cannot be negotiated or altered, such as a fixed term in a contract or a financial instrument with terms that cannot be changed.