A(n)________ Advantage Is the One That a Company Gains from Incorporating

question 75

Multiple Choice

A(n) ________ advantage is the one that a company gains from incorporating a business activity within itself rather than leaving it to a relatively inefficient market.

• A) ownership
• B) internalization
• C) location
• D) comparative

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Definitions:

Evaluating Across Companies

The process of comparing financial performance, strategies, and metrics of different companies within the same industry.

Petty Cash Fund

A small amount of cash kept on hand for minor or incidental expenses within a business.

Journal Entry

A record in accounting that represents a transaction and its effects on various accounts, typically involving at least one debit and one credit.

Cash Short and Over

An account that tracks discrepancies between the expected cash amounts and the actual cash counted, indicating shortages or overages.