Why Might a Company Use Barter Rather Than Money to Make

question 262

Multiple Choice

Why might a company use barter rather than money to make a trade?

• A)Barter trade is generally more efficient than money-based trade.
• B)Barter can enable two firms to trade when their cash flows are limited.
• C)Money requires a coincidence of wants; barter is more direct.
• D)Money is efficient only for large transactions, so barter is preferred for smaller transactions.

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Definitions:

Afraid

The feeling of fear or apprehension about a potential or real danger, threat, or harm.

Secondary Group

A sociological term for a type of social group where interactions are impersonal, formal, and based on roles or activities rather than personal connections.

Passing Acquaintance

A superficial relationship with someone, characterized by minimal and casual interactions.

Social Interaction

The process by which individuals act and react in relation to others in a society, shaping social relationships and society itself.