Which Is Not a Common Reason a Firm May Select

question 13

Multiple Choice

Which is not a common reason a firm may select a stability strategy?

• A)The firm may risk prosecution for monopolistic practices.
• B)Costs associated with growth may exceed the benefits.
• C)Growth may compromise customer service.
• D)All of the above are common reasons.

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Definitions:

Risk of Loss

The probability or chance that an investment's actual return will be different than expected, including losing some or all the original investment.

Different Loans

A variety of borrowing options available to individuals or entities, each with unique terms, interest rates, and purposes.

Depositors

Individuals or entities that place their money in a financial institution such as a bank, for the purpose of saving or earning interest.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits, checking accounts, and negotiable order of withdrawal (NOW) accounts.