If There Is an Increase in Demand for a Good

question 36

Multiple Choice

If there is an increase in demand for a good,

• A) there will be an increase in demand for the inputs that produce it.
• B) there will be a decrease in demand for the inputs that produce it.
• C) there will be an increase in supply of the inputs that produce it.
• D) there will be a decrease in supply of the inputs that produce it.

Identify the types of collateral used in secured loan agreements and their purposes.

Comprehend the reasons for and mechanisms behind the provision of trade credit by firms.

Distinguish between different financing arrangements involving a firm’s inventory as collateral.

Recognize the services provided by accounts receivable factors to borrowers.

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Definitions:

Freight Costs

Charges incurred for transporting goods between places, typically included as part of the cost of goods sold or inventory.

FOB Destination

A shipping term meaning the seller retains the risk and ownership of goods until they are delivered to the buyer's location.

Freight Charges

Costs associated with transporting goods from one place to another, often paid by the buyer or seller depending on terms of sale.

Perpetual Inventory System

An inventory tracking system that updates item balances after each purchase or sale, providing a continuous record of inventory.