Value Additivity Works for

question 39

Multiple Choice

Value additivity works for
I.combining assets;
II.splitting up of assets;
III.the mix of debt securities issued by the firm

• A)I only
• B)II only
• C)I and II only
• D)I, II, and III

---

Definitions:

Labor Hours

The total number of hours worked by employees within a specific period, often used to measure productivity or labor costs.

Inventory Holding Cost

Expenses associated with storing unsold goods, including warehousing, insurance, taxes, depreciation, and opportunity costs of capital tied up in inventory.

Marginal Subcontracting Cost

The extra expense associated with outsourcing an additional unit of production or service.

Layoff Cost

The financial impact associated with the termination of employees traditionally as a result of downsizing, restructuring, or automation.