Which of the Following Statements Regarding Economies of Scale and Scope

question 32

Multiple Choice

Which of the following statements regarding economies of scale and scope is FALSE?

• A)Cost-reduction synergies are hard to predict and achieve.
• B)Because the CEOs of small firms receive information so quickly,small firms are often able to react in a timely way to changes in the economic environment.
• C)Synergies usually fall into two categories: cost reductions and revenue enhancements.
• D)There may also be costs associated with the size of large enterprises.

Analyze the impact of government policies and economic principles on resource extraction decisions.

Understand the Universal Declaration of Human Rights and its implications.

Recognize the impact of the McCarran-Walter Act on immigration and citizenship.

Analyze the reasons behind Harry Truman’s vetoes and administrative decisions.

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Definitions:

Purchases Journal

A specialized accounting journal used to record all purchases of merchandise, inventory, and other supplies on credit.

Life Vests

Safety devices designed to keep an individual afloat in water and reduce the risk of drowning.

Customer Account

An account that records all transactions between a business and its customers, including purchases, payments, and credits.

Subsidiary Ledgers

Detailed ledgers that contain financial information on specific accounts or areas, such as accounts receivable or payable, supporting the general ledger.