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, Swim and Fin's financial problems are the result of speculative production.

Question

Quizplus · Accepted Answer

The statement is true. Speculative production is the production of goods without a confirmed purchase order, which can result in financial difficulties for the producer if the goods are not sold or payment is delayed. In this case, Swim and Fin Products produces goods without a confirmed payment, which leads to a time lag between production and payment, causing financial problems.

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