Backward Linkages Arise When

question 29

Multiple Choice

Backward linkages arise when

• A) the production of one good decreases demand in industries that supply components for that good.
• B) the production of one good increases the profits in industries that supply components for that good.
• C) the production of goods for export increases demand in industries that supply components for that good.
• D) the production of goods that were previously imported increases demand in consumers for that good.
• E) the production of one good increases demand in industries that supply components for that good.

---

Definitions:

Receivables

Money owed to a company by customers or clients for goods or services that have been delivered or used but not yet paid for.

Cost Method

An accounting approach used for recording investments, where the investment is recorded at its acquisition cost without any subsequent change in its value unless there is an impairment or disposal.

Equity Method

An accounting method used to record investments in which the investor has significant influence but not full control.

Total Dividends

The total sum of money paid to shareholders out of a company's earnings.