Which of the Following Would Be a Private Cost to a Cigarette

question 131

Multiple Choice

Which of the following would be a private cost to a cigarette manufacturer?

• A) Price of leaf tobacco.
• B) Cost to the government of the hospital expenses of indigent smokers.
• C) Increased risk of cancer to the nonsmoking passengers in the smoker's carpool.
• D) Price of a pack of cigarettes.
• E) The loss in utility received because the smoker must stand outside her office building in the winter to smoke.

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Definitions:

Cash Cycle

The time period between the outlay of cash for the purchase of inventory and the collection of cash from customers for the sale of that inventory.

Short Term Financing

Financing obtained for a time period of up to one year, used to fund immediate operational needs such as inventory purchase or payroll.

Bankers Acceptances

A short-term debt instrument issued by a company that is guaranteed by a commercial bank, often used in international trade.

Inventory Loan

A loan taken by a company to purchase inventory, where the inventory itself often serves as collateral for the loan.