Which of the Following Statements Is True

question 39

Multiple Choice

Which of the following statements is true?

• A)A large number of small banks encourages competition and efficiency.
• B)A few large firms would result in limited competition and ineffiency.
• C)Higher profits result when more firms are in the local market.
• D)All of the above are true.
• E)Both a and b are true.

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Definitions:

Direct Method

A cash flow statement preparation approach that shows actual cash receipts and payments, as opposed to the indirect method.

Balance Sheet

A document presenting a firm's assets, liabilities, and owner's equity at a certain date.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered or used but not yet paid for.

Cash Effect

The impact of transactions on the cash position of a company, including inflows and outflows.