For a Small Coffee Cafe,which of the Following Is a Nonvalue-Adding

question 127

Multiple Choice

For a small coffee cafe,which of the following is a nonvalue-adding activity?

• A)Importing coffee beans
• B)Purchasing ingredients
• C)Accounting for materials and conversion costs
• D)Operating the drive-through window

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Definitions:

C Rating

A rating given to a security indicating significant risk; it's one of the lower ratings in the grading scale of investments.

Catastrophe Bonds

Insurance-linked securities issued by insurance companies to transfer major risks from the issuer to investors, typically used for natural disaster risks.

Asset-Backed Bonds

Bonds that are secured by a pool of assets, such as loans or receivables, which generate the cash flow to pay bondholders.

TIPS

Treasury Inflation-Protected Securities, a type of U.S. Treasury bond designed to help investors protect against inflation.