A. cash
B. wholesale
C. quantity
D .trade
E. preferential
Answer: The correct answer is letter “D”: trade.
Explanation: Trade discount is the amount of money that a manufacturer reduces from the sale of a product to a reseller so the reseller can sell the good at its original price to make a profit. The trade discount could be a specific amount of money agreed between the manufacturer and the reseller or it can be a percentage of the total sale.