The Saying That "There's No Such Thing as a Free

question 24

Multiple Choice

The saying that "There's no such thing as a free lunch" refers to the

• A) marginal principle.
• B) spillover principle.
• C) principle of opportunity cost.
• D) reality principle.

---

Definitions:

Poison Pill

A strategy used by companies to deter hostile takeovers by making the company less attractive to the potential acquirer.

Consolidation

The process of combining multiple entities or accounts into a single entity or account for reporting and analysis purposes.

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends, but with dividends paid after preferred shareholders.

Absorbed Firm

A company that has been merged into or acquired by another company, ceasing to exist as an independent entity.