Which of the Following Is a Transaction Cost

question 1

Multiple Choice

Which of the following is a transaction cost?

• A) price of a ticket to a concert
• B) price of food eaten before a concert
• C) time spent standing in line to buy the ticket
• D) price of a T-shirt at the concert

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Definitions:

Financial Reporting

Constructing communications that display the fiscal situation of an enterprise to its management team, financial backers, and governmental officials.

Voluntary Disclosure

The practice of a firm releasing non-required information willingly to its stakeholders, aiming to increase transparency and reduce information asymmetry.

Income Smoothing

The use of accounting techniques to level out net income fluctuations from one period to the next, aiming for a more stable financial appearance.

Portfolio Management

The process of making investment decisions by allocating assets among securities, sectors, or industries to optimize returns.