This Theory Advocates That the Available External Market Does Not

question 56

Multiple Choice

This theory advocates that the available external market does not provide an efficient environment in which the firm can profit by using its technology or production resources.

• A) Monopolistic Advantage theory
• B) Internalization theory
• C) both A & B
• D) none of above

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Definitions:

Net Pay

Gross pay less payroll deductions; the amount the employer is obligated to pay the employee.

Payroll Taxes

Taxes that employers are required to withhold from employees' paychecks and/or pay on behalf of their employees, including Social Security and Medicare taxes.

Discounting

In finance, refers to the process of determining the present value of a payment or a series of payments that will be received in the future.

Note Payable

A written agreement to pay a specified sum of money, plus interest, on a set date, representing a liability for the issuer.