As a Firm Grows Larger

question 1

Multiple Choice

As a firm grows larger

• A)economies of scale set in,then diseconomies of scale.
• B)diseconomies of scale set in,then economies of scale.
• C)economies of scale and diseconomies of scale set in at the same time.
• D)neither economies of scale nor diseconomies of scale set in.

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Definitions:

Jointly Controlled Operation

A joint operation where the parties that have joint control of the operation have rights to the assets, and obligations for the liabilities, relating to the arrangement.

Cash Position

A company's total cash and liquid assets minus its liabilities.

Joint Venturer

is an entity that engages in a joint venture, sharing control, resources, and risks with other ventures.

One-Line Method

A method used in accounting to consolidate a parent company's investment in a subsidiary when only a minority interest is owned.