Trade involves goods or services exchange, while cash discount offers incentives for prompt payment in cash.
Trade refers to the exchange of goods or services between parties, involving the transfer of ownership from one to another. On the other hand, a cash discount is a financial incentive offered by a seller to a buyer for paying an invoice promptly in cash, leading to a reduction in the total amount due.
For example, in a trade scenario, two individuals exchange goods directly, whereas in a cash discount situation, a seller might offer a 2% discount if the buyer pays within 10 days. The key difference lies in the method of exchange and the timing of payment.
https://brainly.com/question/29463091