Question

A problem facing the timber industry is the absence of any effective way to prove that rain forest timber has been legally harvested. In places like Indonesia, as much as 80% of timber available for sale is illegally cut. Companies like Home Depot do not want to sell timber from illegally logged forests, even though demand is great for timber from rain forests. Which of the following required for an exchange is missing when a company tries to sell illegally acquired logs to Home Depot?

a. Each party has something of value to the other party.
b. There are at least two parties involved.
c. Each party is capable of communication and delivery.
d. Each party believes it is appropriate to deal with the other party.
e. None of the above.

Answer 1

The answer is: D) Each party believes it is appropriate to deal with the other party.

Step-by-step explanation:

In order for any type of transaction you must at least have:

• two parties (one party sells, the other party buys)
• each party must have at least one thing that the other party wants (usually a product or money, or at least to different products),
• the parties must be able to communicate and deliver things (goods or money) to one another,
• and last but not least, each party must be willing to make a transaction with the other party.

If Home Depot (the buying party) is not willing to do business with illegal timber companies (the selling party), then there is no way business is going to happen.