Adjustments in Scale Include Which of the Following

question 11

Multiple Choice

Adjustments in scale include which of the following?

• A) a division of labor
• B) economies of scale
• C) vertical integration
• D) horizontal integration
• E) all of the above are ways that scale can be adjusted

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Definitions:

Average Operating Assets

The average value of assets used by a company in its operational activities, calculated over a certain period of time for analysis of performance efficiency.

Residual Income

The income that remains after subtracting all required costs of capital from the operating income; a measure of net profitability.

Minimum Required Rate of Return

The least return expected by investors for assuming the risk of investing in a project or security.

Performance of Divisions

Evaluation of the efficiency, productivity, and profitability of different segments or units within an organization, often used for internal assessment and strategy formulation.