Asked by Reginald Louis on Jul 20, 2024
Verified
Chang is an interior designer who starts his own consulting firm.His friend Rachel is the owner of a coffee shop.Chang decorates Rachel's new coffee shop in exchange for a supply of coffee whenever his clients visit his office.Which of the following sources of funding does this scenario best illustrate?
A) Mortgaging
B) Bartering
C) Trade credit
D) Line of credit
E) Equity financing
Equity Financing
A method of raising capital through the sale of shares in a company, thereby granting shareholders ownership interests.
- Understand the concept and usefulness of trading goods and services without using money in business dealings.
Verified Answer
DG
Darlene GordonJul 24, 2024
Final Answer :
B
Explanation :
This scenario illustrates bartering, which is a form of trade where goods or services are exchanged directly for other goods or services without using a medium of exchange, such as money. Chang provides interior design services in exchange for coffee supplies, making it a barter transaction.
Learning Objectives
- Understand the concept and usefulness of trading goods and services without using money in business dealings.