If Sam, owner of a bicycle repair shop, repairs Jim’s bicycle in excha

QUESTION

If Sam, owner of a bicycle repair shop, repairs Jim’s bicycle in exchange for a dinner at Jim’s restaurant, what has just occurred?

A) a barter
B) a financial leverage
C) a private placement
D) an indenture term
E) a term-loan agreement

ANSWER

Answer: A
Explanation: A) Bartering is the trading of goods and/or services for other goods and/or services with no money changing hands. This is a time-honored way for the cash-strapped to do business.