As a Result of His Third Voyage in 1498,Christopher Columbus

question 23

Multiple Choice

As a result of his third voyage in 1498,Christopher Columbus concluded that

• A) Asia could not be reached by a ship traveling west from Europe.
• B) he had encountered a continent separate from Asia.
• C) all of the lands he had seen were in Asia.
• D) the lands he had discovered offered great mineral wealth.
• E) he had never come even remotely close to Asia.

Understand the preparation and interpretation of a statement of cash flows.

Analyze the effect of cash dividends on financing activities.

Determine a company's free cash flow.

Evaluate the impact of capital expenditures on a company's cash flows.

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Definitions:

Decreasing-Cost Industry

An industry in which average costs of production decrease as the industry grows larger, often due to economies of scale.

Long-Run Equilibrium

A state in which all factors of production and markets in an economy are in balance, and all firms in the market are earning normal profits with no inclination to enter or exit the market.

Internal Diseconomies

Increased per unit costs that occur when a firm or industry grows beyond a certain size, leading to inefficiencies.

External Diseconomies

Negative effects experienced by third parties or the general public due to the activities of a business or industry, not reflected in market costs.