Sonor Designs Is a Small Business That Makes Greeting Cards

question 59

Multiple Choice

Sonor Designs is a small business that makes greeting cards.Because of the small scale of the firm's operations, it cannot afford to purchase the expensive printers it needs to make greeting cards.Instead, it rents the printers from another organization.In the context of business financing, Sonor Designs renting essential business equipment from another company is an example of

• A)asset leasing.
• B)crowdfunding.
• C)factoring.
• D)microfinancing.

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, allowing for beneficial trade.

Cell Phones

Mobile electronic devices that allow for telecommunications over long distances without a wired connection.

Herring

A small, silver-colored fish found in the North Atlantic and Pacific Oceans, important for food and as bait in commercial fishing.

Opportunity Cost

The value of the alternative sacrificed when choosing one option over another.