The Term "Roundabout Methods of Production" Refers to

question 65

Multiple Choice

The term "roundabout methods of production" refers to

• A)Firm A purchasing a product from Firm B and reselling it to consumers.
• B)firms first producing capital goods and then using those capital goods to produce consumer goods.
• C)firms selling unassembled products so that the consumer completes the production process.
• D)banks and other financial institutions making loans available to producers so that the producers can make goods available to consumers; thus in a roundabout way the banks are making the goods available to consumers.

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Definitions:

Discount

A reduction in the price of goods or services, often to encourage prompt payment or increase sales.

Accounts Payable

The amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Discount Period

The time frame in which a payment can be made at a reduced rate, usually before a specified due date.

Invoice

A document issued by a seller to a buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer.