Which of the following is not a drawback of countertrade?
A) firms would normally prefer cash
B) firms may be stuck with unusable goods
C) firms may be stuck with poor-quality goods
D) firms may be able to use buybacks to make a quick profit
E) firms may not be able to dispose of goods at a profit

Question

Quizplus · Accepted Answer

Buybacks can provide a way for firms to make a quick profit by repurchasing their own shares, but this is not a drawback of countertrade. The other answer choices all describe potential drawbacks of countertrade, such as preferring cash, receiving unusable or poor-quality goods, and difficulty disposing of goods at a profit.

Which of the Following Is Not a Drawback of Countertrade