A Company Sells 100 Boxes of Chocolate,yet It Only Produced

question 146

Multiple Choice

A company sells 100 boxes of chocolate,yet it only produced 90 boxes of chocolate during the year.Which of the following is true?

• A) It is impossible to sell more than is produced.
• B) Inventory investment must be negative.
• C) The price of the chocolate must have gone up.
• D) The firm must have acquired the extra 10 boxes from another company.
• E) The firm sold the chocolate but must have given 10 people an IOU.

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Definitions:

Market Determined Rates

Interest rates that are established by the supply and demand forces in the financial markets without direct government control.

International Trade

The exchange of goods, services, and capital across international borders or territories, influencing global economy and business practices.

Eurobond

An international bond issued in a currency not native to the country where it is issued.

U.S. Dollars

The official currency of the United States, widely used as a standard of exchange in international markets.