Explain the basic economics of what is being received and
Explain the basic economics of what is being received and what is being given up in each of the following business transactions.
(a) A company sells packaging material to another company. The terms of sale require full payment upon delivery.
(b) A company sells packaging material to another company. The terms of sale require payment over one year with interest.
(c) A law firm provides legal services to an accounting firm. In lieu of payment, the accounting firm provides accounting services to the law firm.
(d) A company sells telecommunications equipment for a set fee that includes delivery, installation, a 60-day trial period, a three-year maintenance package (often sold separately), and a one-year manufacturer's warranty (often sold separately). Payment will be received over one year without interest.
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