After a switch trade,a firm can end up with counterpurchase credits.

Question

Quizplus · Accepted Answer

Counterpurchase credits can occur when a company trades products or services with another company, and part of the agreement is that the receiving firm must make purchases from the original firm in the future. These credits can be used to purchase goods or services from the original firm at a later date. Thus, it is possible for a firm to end up with counterpurchase credits after a switch trade.

After a Switch Trade,a Firm Can End Up with Counterpurchase