As Firms Increase in Size, They Tend to Experience a

question 9

Multiple Choice

As firms increase in size, they tend to experience a

• A)decrease in the need for managers needed.
• B)decrease in transaction costs.
• C)loss of opportunity cost.
• D)none of the statements associated with this question are correct.

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Definitions:

Trial Balance

An accounting report that lists the balances of all ledgers accounts in order to ensure that total debits equal total credits.

Financial Transaction

A financial transaction refers to an agreement, or communication between a buyer and seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.

Unearned Revenue

Income received by an entity for services yet to be rendered or goods yet to be delivered; also known as deferred revenue.

Liability

Any type of financial debt or obligation that a company or individual owes to another party.