When a Product Is Used in the Production of Another

question 77

Multiple Choice

When a product is used in the production of another good that is destined for resale, the product is considered as a(n) :

• A) consumer product.
• B) business product.
• C) end product.
• D) used product.

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Definitions:

External Benefit

A benefit that results from an economic activity which accrues to unrelated third parties.

Third Party

An entity involved in a transaction or agreement who is not one of the principal parties.

Cooperative

An organization consisting of people who pool their resources to buy and sell more efficiently than they could individually.

Single-Owner

Pertains to a business that is exclusively owned by one individual who is responsible for its operations and liabilities.