Question

Write name a specific company that uses each type of discount.

Cash discount:

Functional discount:

Seasonal discount:

Rebate:

Zero percent financing:

Answer 1

Cash Discount: These are those discount which the seller offers to the buyer, if the buyer makes the immediate cash payment for the transaction. Seller offers cash discounts because, it helps in increases cash inflow for them. Electronic companies offers such discounts on sales. As they get immediate proceeds for their transactions.

Functional Discount: They are also known as trade discount, these discounts are generally used in supply chain. Likewise, a manufacturer will offer discount to the wholesaler and the wholesaler will offer the discount to their retailer. They do so. in order to boost sales. The classic example of this is the publishers companies, they offer trade discounts in percentage to the book sellers to increase publishers sales.

Seasonal Discounts: As the name suggests, these discounts are offered on the change of sesaon to increase off season sales. These discounts are commonly used by clothing apparel companies or even holidays hotel companies,

Rebate: This is like a waiver offered for the immediate payment or even to the dissatisfied customer due to poor performance of the item sold. This is used to keep the company reputation high. Mainly used by Big companies like AMAZON, they do so, to maintain customer loyality.

Zero Percent Financing: This is like offering a loan at 0% to the customer after receiving some down payment immedately. This is done to increase the sales of the companies and to get the steady flow of cash. Many automoiles companies use this discount even mobile companies also uses such discounts.