Containerization

question 114

Multiple Choice

Containerization:

• A) is widely used by railroads, but has not caught on with other modes.
• B) makes it easier to load and unload products, but it increases the risk of damage.
• C) has increased competition between railroads and water shippers since both offer this service.
• D) is commonly used for international shipments from Japan.
• E) None of these alternatives is true.

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Definitions:

Discount on Note Payable

The difference between the face value of a note payable and its issue price when the note is sold for less than its face value, effectively acting as an interest expense over time.

Interest Expense

Money that an entity has to pay over time for the privilege of borrowing funds.

Liquidity

The measure of a company's or individual's ability to meet short-term obligations without raising external capital, often reflected by the amount of cash or easily convertible assets.

Operating Cycle

The period of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from the sales.