When Provided with an Offer of a 10 Percent Discount

question 120

Multiple Choice

When provided with an offer of a 10 percent discount to purchase electronic calculators within the next 30 days, Target buys extra calculators to take advantage of the price discount. Target will offer the calculator to consumers at a discount during the special sale, but then have additional calculators to sell when the sale is over. This is an example of:

• A)an off-invoice allowance.
• B)slotting fee.
• C)forward buying.
• D)diversion.

---

Definitions:

Compounded Monthly

Refers to the calculation of interest added to the principal of a deposit or loan based on a monthly cycle.

Quarterly Compounding

The process of calculating interest earned on an investment or loan every three months, leading to interest being earned on interest.

Compounded Quarterly

The process of computing interest on a principal sum where the interest is calculated every quarter and added to the sum, leading to interest earned on interest.

Monthly Compounding

The process where interest is calculated on a monthly basis and added to the principal, allowing the investment to grow with each month.