Idle Time Gaming, Inc

question 328

Multiple Choice

Idle Time Gaming, Inc., needed silicon wafers that it knew could be mass-produced efficiently by Silicon City, Inc., a start-up firm in India. The Indian company needed MSG (metallurgical grade silicon) in order to make the wafers, which it knew it could get from a Chinese firm. The Chinese firm agreed to supply the silicon to the Indian company if it could get a certain quantity of gaming hardware from Idle Time. This beneficial exchange is described as:

• A) beneficial contracting.
• B) contract manufacturing.
• C) third Party purchasing.
• D) countertrading.

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Definitions:

Acknowledged Sale

A sale in which the parties involved officially recognize the transaction, often through a formal acknowledgment document.

FOB

Free On Board, a term used in shipping to indicate that the seller bears the cost of delivering goods to a specified point and the buyer takes responsibility for damage and loss from that point forward.

Transportation Costs

Expenses associated with the movement of goods or individuals from one location to another.

Selling Price

The amount of money for which a product or service is offered for sale to the public.