Which of the Following Statements Is CORRECT

question 12

Multiple Choice

Which of the following statements is CORRECT?

• A) When fixed assets are added in large, discrete units as a company grows, the assumption of constant ratios is more appropriate than if assets are relatively small and can be added in small increments as sales grow.
• B) Firms whose fixed assets are "lumpy" frequently have excess capacity, and this should be accounted for in the financial forecasting process.
• C) For a firm that uses lumpy assets, it is impossible to have small increases in sales without expanding fixed assets.
• D) There are economies of scale in the use of many kinds of assets. When economies occur the ratios are likely to remain constant over time as the size of the firm increases. The Economic Ordering Quantity model for establishing inventory levels demonstrates this relationship.
• E) When we use the AFN equation, we assume that the ratios of assets and liabilities to sales (A0*/S0 and L0*/S0) vary from year to year in a stable, predictable manner.

Recognize the processes and effects of resocialization in distinct settings.

Understand the fundamental principles of negotiable instruments.

Differentiate between the roles and obligations of parties involved in negotiable instruments.

Recognize the requirements for an instrument to be negotiable under the UCC.

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Definitions:

Metacognition

The consciousness and comprehension of an individual's own cognitive mechanisms, commonly described as "thinking about thinking."

Cognitive Abilities

Refers to the mental capabilities that involve the ability to reason, plan, solve problems, think abstractly, comprehend complex ideas, learn quickly, and learn from experience.

Encoding

The process of converting information into a form that can be stored in memory, such as transforming sensory input into meaningful data.

Braxton-Hicks Contractions

The first (usually painless) contractions of childbirth.