Which of the Following Statement(s)is/are False? (A)Residual Income Can Be

question 21

Multiple Choice

Which of the following statement(s) is/are false? (A) Residual income can be used to compare divisions of different sizes.
(B) Residual income can be used to compare divisions that are profit centers.

• A)only (A)is false
• B)only (B)is false
• C)both (A)and (B)are false
• D)neither (A)and (B)is false

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Definitions:

Barriers To Entry

Obstacles that limit the freedom of potential rivals to enter and compete in an industry or market.

Government Regulations

Guidelines and rules established by governmental bodies to control and direct the activities of businesses and individuals within a society.

Price Searcher

a firm that has some control over the price it charges, as it offers a product or service that is differentiated from those of competitors.

Price Taker

An entity in a market that must accept prevailing prices and lacks the power to influence them due to its small market share.