Question

What is it called when a company sells unused assets for a promise to buy them or similar assets back at roughly the same price?

Answer 1

Round-tripping is when a company sells unused assets for a promise to buy them or similar assets back at roughly the same price.

Round tripping occurs when one company sells unused assets to another party in order to generate sales, and later buys the assets back. For instance, a real estate company sells several properties to a related party in exchange of money and then buys them back a year later for the same price.

So doing this generates sales not only for the original seller, but also for the related party when it sells the properties back. The government also uses round-tripping in times of recession to increase money flow in the market.

Hence, round-tripping refers to money that leaves the country and makes its way back into the country though various channels.

To learn more about unused assets here:

brainly.com/question/23946350

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