All of the Following Are Internal Firm Incentives to Diversify

question 63

Multiple Choice

All of the following are internal firm incentives to diversify EXCEPT:

• A) overall firm risk reduction.
• B) uncertain future cash flows.
• C) an abundance of firm resources.
• D) low performance.

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Definitions:

Clerical Activity

Routine office tasks and procedures such as filing, typing, and scheduling, which support the administrative functions of an organization.

Purchase Orders

Written authorization for a supplier to deliver a specified quantity of goods at a stated price.

Batch-Level Activity

Batch-level activity pertains to the costs and operations associated with processing groups of units or products together rather than individually.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, providing more accurate product costing.