Which of the Following Statements Is True Concerning Domestic Expansion

question 3

Multiple Choice

Which of the following statements is true concerning domestic expansion of a business?

• A) Cash funding requirements will be lower for a corporation than a corporate division if the expansion activity incurs start-up losses.
• B) Cash funding requirements will be higher for a corporation than a corporate division if the expansion activity incurs start-up losses.
• C) Obligations of a new division are separate from the parent company due to the limited liability of the division.
• D) The main advantage of incorporating an expansion activity is the use of start-up losses against income from other divisions of the founding corporation.

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Definitions:

Basilar Membrane

A structure in the cochlea of the inner ear that plays a key role in the perception of sound, vibrating in response to sound waves and thereby stimulating hair cells to send nerve impulses to the brain.

Eardrum

A slender membrane dividing the external ear from the middle ear, which oscillates when hit by sound waves.

Oval Window

The membrane-covered opening that leads from the middle ear to the vestibule of the inner ear and is involved in the process of hearing.

Amplitude

In the context of waves, it is the height of the wave, which can determine the intensity or loudness of a sound.