Which Assumption Is Often Realistic for a Firm in the Short

question 15

Multiple Choice

Which assumption is often realistic for a firm in the short run

• A)The firm can vary both the size of its factory and the number of workers it employs.
• B)The firm can vary the size of its factory, but not the number of workers it employs.
• C)The firm can vary the number of workers it employs, but not the size of its factory.
• D)The firm can vary neither the size of its factory nor the number of workers it employs.

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Definitions:

Payable

Short-term financial obligations or debts of a company, typically to suppliers, that are due to be paid within one year.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Dividends Payable

A liability on a company's balance sheet representing the amount of declared dividends that are owed to shareholders but not yet paid.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.