Florida-based Swim and Fin Products often experiences a time lag between the time goods are produced and the time that retailers pay for the finished products.In this situation,the Swim and Fin's financial problems are the result of speculative production.

Question

Quizplus · Accepted Answer

Speculative production occurs when a company produces goods without having confirmed orders or customers, in the hopes of selling the products once they are produced. In this situation, Swim and Fin Products is experiencing a time lag between production and payment, indicating that they may have engaged in speculative production and are now facing financial difficulties as a result.

Florida-Based Swim and Fin Products Often Experiences a Time Lag