Which of the following is not an example of a barter arrangement?

Study for the 10 Hour Federal Tax Law Exam. Review flashcards and multiple choice questions, each with hints and explanations. Get exam-ready with our comprehensive materials!

A babysitting cooperative run by neighborhood parents is not considered a barter arrangement because it typically involves a structured system of shared services rather than direct exchanges. In a barter arrangement, specific goods or services are traded directly for other goods or services without the use of money. In most cooperative situations, parents are usually working together to provide care for each other’s children, which is more about community support and mutual benefit rather than a direct trade of services.

In contrast, trading services between two businesses is a clear example of bartering as it involves each party directly exchanging their services without monetary transactions. Similarly, exchanging goods without monetary payment is a fundamental characteristic of barter, as it explicitly describes the essence of this type of transaction. Lastly, service exchanges for promotional advertising also fit the definition of bartering since they entail one service being exchanged for another without any cash involved. Each of these situations exemplifies the fundamental concept of bartering, which does not apply in the case of the babysitting cooperative.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy