A Large Farming Cooperative That Focuses on the Production of Fruits

question 122

Multiple Choice

A large farming cooperative that focuses on the production of fruits and vegetables uses a business that sells the farmers' products in foreign countries and also provides consulting, insurance, legal assistance, and warehousing to the cooperative. This business would most likely be called a(n)

• A) trading company.
• B) export specialist.
• C) contract wholesaler.
• D) licensor.
• E) strategic partner.

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Definitions:

Purchase Of Inventory

The act of acquiring goods or raw materials that a company intends to sell in its normal business operations.

Terms 2/15

A payment term indicating that a buyer can take a 2% discount on the invoice amount if the payment is made within 15 days of the invoice date.

Net 45

This payment term requires the buyer to pay the total net amount due within 45 days after the invoice date or goods receipt.

Income From Operations

Earnings derived from a company's primary business activities before taxes and extraordinary items.