Which of the Following Is a Key Difference Between Auctions

question 77

Multiple Choice

Which of the following is a key difference between auctions and clearinghouses?

• A) Auctions are used for low-value products, whereas clearinghouses are used for high-value products.
• B) Clearinghouses take title to the goods they sell, whereas auctions do not.
• C) Clearinghouses facilitate only B2B sales, whereas auctions facilitate B2B and B2C sales.
• D) Auctions support a competitive bidding process, whereas clearinghouses sell at a stated price.

---

Definitions:

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, reflected in the income statement as a financial charge.

Comparative Common-Size Balance Sheet

A balance sheet that presents financial figures as percentages of a total in order to facilitate year-over-year and company-to-company comparisons.

Significant Changes

Important alterations that can have a substantial impact on a company's operations, financial performance, or strategy.

Balance Sheet Components

The major sections of a balance sheet, typically including assets, liabilities, and shareholders' equity.