Why might a company use barter rather than money to make a transaction?
A) Barter is generally more efficient than money exchanges.
B) Barter can enable two firms to trade when their cash flows are limited.
C) Money requires a coincidence of wants but barter is more direct.
D) Money is economically efficient for large transactions,but barter is preferred for smaller transactions.

Question

Quizplus · Accepted Answer

Barter can be advantageous for firms experiencing cash flow constraints as they may be able to trade goods or services they currently have on hand. This can be especially helpful for small businesses.

Why Might a Company Use Barter Rather Than Money to Make