Which Situation Is Indicative of Barter

question 3

Multiple Choice

Which situation is indicative of barter?

• A) A physician chooses to grow her own food and trade it for carpentry work.
• B) The government accepts fuel, fertilizer, and pesticides in lieu of tax payments by companies.
• C) A power company accepts medicine from a pharmaceutical company as payment for electricity.
• D) All of the above are indicative of barter.

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Definitions:

Increased Liquidity

The state or condition of having more cash or easily convertible into cash assets, making it easier to meet short-term obligations.

Stock Price

The cost of purchasing a share of a company, as determined by supply and demand in the market.

Residual Dividend Policy

A strategy where a company pays dividends out of the residual or leftover equity only after all project capital needs are met.

Target Capital Structure

The ideal mix of debt, equity, and other financing sources a company aims to hold, used to optimize its financial performance and risk profile.