Through Trade Promotions,manufacturers Sometimes Pay Various ________ to Retailers for Such

question 5

Short Answer

Through trade promotions,manufacturers sometimes pay various ________ to retailers for such activities as advertising,displays and physical distribution.

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Definitions:

Compounded Nominal Rate

A nominal rate that is compounded refers to the stated interest rate of an investment or loan, not taking into account the effects of compounding over specific periods.

Effective Rate

The effective rate is the interest rate on a loan or investment, adjusted for the actual number of compounding periods per year, giving a true annual rate.

Compounded Nominal Rate

The rate at which interest is calculated on the initial principal and previously accumulated interest over a specific time period without considering the inflation.

Effective Rate

The annual interest rate on a loan or investment, taking into account the effect of compounding, as opposed to the nominal rate which does not.