Adding Lumpy Assets to a Firm Does Not Affect the Financial

question 63

True/False

Adding lumpy assets to a firm does not affect the financial requirements associated with an expansion because the annual costs associated with growth normally are fixed, no matter the level of sales. 

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Definitions:

Intelligence

A mental quality that consists of the abilities to learn from experience, adapt to new situations, understand and handle abstract concepts, and use knowledge to manipulate one's environment.

Primary Components

The main or most important parts that make up a system, structure, or compound.

Structure

A fundamental and sometimes intangible notion supporting or structuring an object, system, or concept.

Function

The purpose or role that something is designed or expected to fulfill.