Which of the Following Can NOT Explain Why Large Firms

question 45

Multiple Choice

Which of the following can NOT explain why large firms tend to pay higher salaries?

• A) Large firms find monitoring more expensive.
• B) Large firms allow less independence and have more rigid discipline.
• C) Large firms find job vacancies less costly.
• D) Efficiency wages work better in large firms.

Understand the concept of financial leverage and its effects on a company's financial flexibility and shareholder return.

Recognize the importance of financial planning, control, and the forecasting process in corporate finance.

Understand the financial instruments and strategies used by companies for raising funds and returning profits to shareholders.

Understand the components and scales used in Wechsler's measure of intelligence.

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Definitions:

Statement of Cash Flows

A financial statement detailing the impact of alterations in balance sheet accounts and income on cash and cash equivalents, divided into operating, investing, and financing activities.

Adjusted Trial Balance

A list of accounts and their balances after the company has made all adjustments.

Comparative Balance Sheets

Financial statements that display a company's financial position at different points in time side by side, facilitating year-over-year or period-over-period comparison.

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives, reflecting the asset's consumption, wear and tear, or obsolescence.