Why Is the Demand for Resources Called a "Derived" Demand

question 307

Essay

Why is the demand for resources called a "derived" demand?

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Definitions:

Intra-entity Transfers

Transactions involving assets, services, or funds between divisions or departments within the same entity.

Voting Stock

Shares that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Foreign Corporation

A company that is incorporated in a country outside of where it operates or conducts its business.

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.