Consider a Scenario in Which There Are Five Manufacturers,no Intermediaries,and

question 150

True/False

Consider a scenario in which there are five manufacturers,no intermediaries,and four consumers.Twenty transactions would be required for each consumer to receive products from each manufacturer.The introduction of one intermediary reduces the required number of transactions to four and demonstrates the idea of contact efficiency.

---

Definitions:

Income-Sharing Ratio

The proportion in which partners in a business agree to distribute the net income or loss.

Salary Allowance

A fixed amount or benefit often added to an employee's salary, such as for travel or housing.

Capital Balance

The amount of money that shareholders have contributed to a company plus retained earnings or minus accumulated losses.

Net Income

What a business financially gains in the end, after subtracting expenses and taxes from its initial revenue.