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.

Question

Quizplus · Accepted Answer

Barter can be particularly useful for companies facing cash flow problems, allowing them to obtain goods or services by trading their own goods or services, rather than using cash. This can be a practical solution when cash is scarce or when seeking to conserve cash for other uses.

Why Might a Company Use Barter Rather Than Money to Make