Passage 2
Some suppliers have discount policies that give certain customers a reduced price for goods. Trade discounts are discounts offered to middlemen. For example. the retail price of a shirt may be ; the manufacturer may sell it to the retailer at a 40 percent discount from this price, or S6. Trade discounts permit middlemen to make a profit by performing special marketing functions.
Quantity discounts encourage customers to buy in large amounts. A dealer who buys a truckload of lawn mowers will pay a lower price per lawn mower than the dealer who buys only a few machines. Some firms offer cumulative quantity discounts. These permit a customer to total up consecutive orders to qualify for a discount. For example, let us assume that an order of forty typewriters qualified for a 10 percent discount. An office equipment store might order twenty-five, then ten, and then another five. Since the cumulative total would be forty, the store would be entitled to take 10 percent off its entire bill.
Cash discounts are given in order to encourage prompt payment. Cash discount terms are stated on the bill that accompanies the merchandise. For example. two/ten, net 30" means that a customer who pays within ten days of receiving the merchandise can take percent off the bill. The customer has the choice of paying in ten days and taking the discount, or waiting the full thirty days and paying the net, or full, amount of the bill.
Seasonal discounts are sometimes given by firms that sell seasonal items like air conditioners or ski equipment. A company that installs central home air conditioning may offer customers a 10 percent discount on work done in the fall and winter. A ski shop may give discounts on equipment purchased during the summer. Companies offer seasonal discounts to spread out their sales into those times of the year when business is slow.
Cash discounts are given ____
A、if a customer makes a quick or timely payment
B、if a customer pays the bill in cash
C、if a customer pays the bill within ten days of receiving the merchandise
D、if a customer wants to pay the net amount of the bill
【正确答案】：A
【名师解析】:Cash discounts are given to incentivize customers to make payments promptly. The term "cash discount" in the context of the passage refers to a reduction in the total bill that a customer can avail if they choose to pay within a specified period, typically shorter than the net payment terms. In the example provided, "two/ten, net 30" indicates that a customer can take a discount if they pay within ten days of receiving the goods. This type of discount is not necessarily linked to the method of payment (cash or otherwise), but rather to the timeliness of the payment. Therefore, the correct answer is A, which states that a cash discount is given if a customer makes a quick or timely payment.
