Buying a Party's Position in a Countertrade in Exchange for Hard

question 57

Multiple Choice

Buying a party's position in a countertrade in exchange for hard currency and selling it to another customer is known as a(n)

• A)Counterpurchase
• B)Offset purchase
• C)Switch trade
• D)Buyback agreement

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Definitions:

Total Cost

The aggregate amount of expenses incurred by a business in producing goods or services, including both fixed and variable costs.

Economic Profit

The variance between gross receipts and all outlays, including both tangible and intangible costs.

Accounting Profit

The total revenue of a business minus the explicit costs of operating, not including opportunity costs.

Implicit Costs

The opportunity costs that are not directly paid out but represent the loss of potential income from using resources in a certain way.