Commerce Paper 1,Nov/Dec 2009  
Questions: 1 2 3 4 5 6 7 8 9 10 Main
General Comments

Question 4
Explain the following types of discount:
  1. Trade discount;
  2. Quantity discount;
  3. Cash discount;
  4. Seasonal discount.

State two features of each of the following instruments of payment:

  • Promissory note;
  • Bank draft;

Standing order.



Candidates’ performed poorly in this question.  Answers were out-rightly wrong in most   cases. The following types of discount should be noted:
   Trade discount:is a reduction in the catalogue price of a commodity given to retailers to enable them take profit.
            Quantity discount: is a reduction in price based on the volume of goods purchased by a retailer.
            Cash discount: : is a reduction in the debt payable by a retailer who pays before due date.
            Seasonal discount:      is a reduction in price to buyers who order and pay for goods during and off seasons.

Powered by Sidmach Technologies(Nigeria) Limited .
Copyright © 2015 The West African Examinations Council. All rights reserved.