Which of the Following Would Contribute Most to a Firm

question 165

Multiple Choice

Which of the following would contribute most to a firm experiencing "economies of scale"?

• A)rising long-run average costs
• B)the law of diminishing marginal returns
• C)specialization of labor and management within the firm
• D)deterioration of information and control within the firm

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Definitions:

Income Taxes Payable

The amount of federal, state, or local taxes that a company is obligated to pay to the tax authorities, based on its earnings, within the current accounting period.

Income Tax Expense

The cost incurred by businesses or individuals due to income taxes.

Investing Activities

Transactions related to the purchase or sale of long-term assets and investments, which are part of the cash flow statement indicating how cash is invested.

Financing Activities

Activities involving the acquisition of funds and the settlement of obligations with investors, such as the issuance of stocks and bonds, and the distribution of dividends.