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Cash Discount:

Reduction in price given by the creditor to the debtor is known as cash discount. This discount is intended to speed payment and thereby provide liquidity to the firm. They are sometimes used as a promotional device. we also explain that discount is relaxation in price.

http://en.wikipedia.org/wiki/Discounts_and_allowances#Trade_discount

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Q: What is called a discount given to encourage prompt payment?
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