The Phrase "No Such Thing as a Free Lunch" Means

question 107

Multiple Choice

The phrase "no such thing as a free lunch" means

• A)people must face tradeoffs.
• B)rational people think at the margin.
• C)people respond to incentives.
• D)trade can make everyone better off.

Calculate the effects of intercompany sales and dividends on consolidated financial results.

Understand the accounting treatment for significant influence versus control in investments.

Determine consolidated retained earnings adjustments stemming from subsidiaries.

Explain strategic reasons for a parent company to own less than 100% of a subsidiary.

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