When a Firm Buys on the Marketplace What It Cannot

question 33

Multiple Choice

When a firm buys on the marketplace what it cannot make itself,the costs incurred are referred to as:

• A)switching costs.
• B)network costs.
• C)procurement.
• D)agency costs.
• E)transaction costs.

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Definitions:

Maturity Value

The total amount payable to an investor at the end of a fixed-term investment, including principal and any accrued interest.

Discounted Note

A debt instrument sold for less than its face value that will pay the face value at maturity.

Proceeds

Maturity value less bank discount.