The Difference Between a Sale and a Contract to Sell

question 1

Multiple Choice

The difference between a sale and a contract to sell is that:

• A)a sale involves an immediate transfer of title from one party to another while a contract to sell does not.
• B)a sale always requires the price to be paid up front by the seller while a contract does not.
• C)a contract to sell involves the immediate transfer of title from one party to another while a sale does not.
• D)a contract to sell involves the immediate transfer of cash to the seller while a sale does not.

Identify when economies of scale or diseconomies of scale are occurring within a production process.

Understand the concepts of fixed, variable, and total costs in production.

Analyze the relationship between output and costs using average and marginal measures.

Identify the effects of labor and capital inputs on production costs.

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Definitions:

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods within a certain period.