The Practice of Buying Something in One Market and Selling

question 25

Multiple Choice

The practice of buying something in one market and selling it in another market where it earns a higher price is called ________.

• A) marketing
• B) arbitrage
• C) promotion
• D) sponsorship

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Definitions:

Work in Process

Inventory consisting of items that are in the production process but are not yet completed.

Ending Balance

The final amount in an account at the end of a period, calculated by adjusting the starting balance for charges, credits, and other financial activity.

Goods Sold

The total quantity of products that have been sold to customers.

Adjusted Cost

The cost of an asset after accounting for adjustments such as depreciation, improvements, or damage.