Which of the Following Asset Specificity Forms Describes Why Glass

question 2

Multiple Choice

Which of the following asset specificity forms describes why glass container production requires molds custom tailored to particular container shapes and glass making machines?

• A)Site specificity
• B)Physical asset specificity
• C)Dedicated assets
• D)Human asset specificity
• E)The fundamental transformation

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Definitions:

Requirements Contract

A contract in which one party agrees to supply as much of a product or service as the other party needs.

Composition Agreement

An arrangement where creditors agree to accept less than the full amount owed to them as full satisfaction of their claims.

Debtor

A person or entity that owes money to another party, usually as a result of borrowing.

Creditors

Creditors are individuals, businesses, or institutions to whom money is owed by debtors for goods, services, or loans provided.