Explain Why We Must Take into Account Changes in Business

question 73

Essay

Explain why we must take into account changes in business inventories when calculating GDP.

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Definitions:

Credit Policies

The guidelines and terms that a company establishes to manage the offering of credit to its customers, including repayment terms and credit limits.

Discount

A reduction on the normal selling price of a product or service, often used as a sales incentive to increase demand or reward customer loyalty.

Formal Training Program

An organized education or instructional course designed to impart a specific set of skills or knowledge, typically in a professional context.

Selling

Convincing a person to acquire a product or service.