The Fact That a Financial Intermediary Can Hire a Lawyer

question 57

Multiple Choice

The fact that a financial intermediary can hire a lawyer to write one contract that works for many customers is an example of:

• A) economies of scale.
• B) the law of diminishing marginal returns.
• C) the law of increasing opportunity cost.
• D) the law of demand.

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Definitions:

Operating

Pertaining to the day-to-day functions and activities necessary for a business or organization to run effectively.

Internal Users

Individuals within an organization who use its financial information to make decisions, including executives, managers, and other employees.

Management Reports

Analytical reports designed for business managers to assist in making strategic decisions.

Decision Making

The cognitive process resulting in the selection of a course of action among several possible alternatives.