The Main Difference Between a Final Consumer and an Intermediate

question 88

Multiple Choice

The main difference between a final consumer and an intermediate consumer is that

• A)the intermediate consumer purchases finished products, whereas the final consumer buys only raw materials.
• B)intermediate consumers buy raw materials and sell finished products to final consumers, who use them.
• C)final consumers make more purchases than the intermediate consumers.
• D)unlike final consumers, intermediate consumers provide monetary benefits to organizations by purchasing their products.
• E)final consumers tend to have more bargaining power than intermediate consumers.

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Definitions:

Net Cash

Represents the total cash earnings minus cash expenses over a period, highlighting the company's ability to generate cash from its operations.

Investing Activities

Investing activities are transactions involving the purchase and sale of long-term assets and other investments not considered as cash equivalents.

Net Cash

The difference between a company's total cash inflows and outflows.

Operating Activities

Day-to-day actions that relate to producing goods, providing services, and selling merchandise to customers, which are reflected in a company's cash flows.