For an Exchange to Occur, Four Conditions Must Exist: (1)

question 115

Multiple Choice

For an exchange to occur, four conditions must exist: (1) two or more individuals, groups or organisations must participate, and each must possess 'something of value' that the other desires; (2) the exchange must provide a benefit or satisfaction to both parties; (3) each must have confidence in the promise of the 'something of value' held by the other; and (4) :

• A)the parties must agree to participate in the trading of 'something of value'.
• B)to build trust, parties to the exchange must meet expectations.
• C)both parties must participate in the trading of 'something of value'.
• D)one party must be willing to compromise.
• E)one party must have sufficient bank credit to finance the exchange.

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Definitions:

Acid-Test Ratio

A stringent indicator of a company's liquidity, calculated by dividing liquid assets excluding inventories by current liabilities.

Company

A business organization founded by a group of individuals dedicated to pursuing and administering a commercial or industrial venture.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and accounts receivable).

Company

A business entity established by a collection of people to conduct and manage a commercial venture.