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Your Friend Comes to You with a Problem

question 27

Multiple Choice

Your friend comes to you with a problem. It seems his shrimp boats aren't catching nearly as much shrimp as they used to. He can't understand why because he used to catch all the shrimp he could handle. Each year he added a new boat, and for a long time each boat caught tons of shrimp. As he added more boats, there came a time when each boat caught somewhat fewer shrimp, and now, each boat is catching a lot less shrimp. Which of the following topics might help your friend understand the source of his problem?


Definitions:

Sales/FOB Terms

Terms used in international trade to define when and where the responsibility and ownership of goods are transferred from the seller to the buyer; "FOB" stands for Free On Board.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, typically used as inputs in the production of other goods or services.

Distinctives

Unique characteristics or features that differentiate a product, service, or organization from its competitors.

High Risk

A situation or investment that carries a significant chance of loss or failure.

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