Costs of the Firm That Rise with Increased Levels of Investment

question 48

Multiple Choice

Costs of the firm that rise with increased levels of investment in its current assets are called ________ costs.

• A)carrying
• B)shortage
• C)order
• D)safety
• E)trading

---

Definitions:

Net Income

The profit a company reports after all operational expenses and tax obligations are subtracted from its revenue.

Cash Flow

The total interchange of cash and assets comparable to cash, circulating in and out of a commercial venture.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting repayment.