_____ Occurs When a Selling Company Agrees to Accept Goods

question 35

Multiple Choice

_____ occurs when a selling company agrees to accept goods from the buying country as partial payment.

• A)Compensation trading
• B)Buy-back
• C)Barter
• D)Counterpurchase
• E)Switch trading

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Definitions:

Reverse Stock Split

A corporate action where a company reduces its total number of shares outstanding, thereby increasing the value of each remaining share.

Market Price

The present cost at which a service or asset is available for purchase or sale in the financial marketplace.

Residual Dividend

A policy by which dividends are paid to shareholders after all project capital needs and working capital requirements are met.

Positive Net Present Value

An indicator that an investment will generate more value than its cost, signifying its profitability.