Which of These Does Not Describe the Differential Information Hypothesis

question 34

Multiple Choice

Which of these does not describe the differential information hypothesis?

• A)Amount of information available from sources other than accounting reports is an increasing function of firm size
• B)The larger the firm,the more information is contained in profits
• C)The differential information hypothesis is developed from the theory of transaction costs and different incentives for information search
• D)Incentive to undertake research for mispricing is greater for larger firms,given the costs of information search are fixed and constant across firms

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Definitions:

Routine Documents

Documents that are used regularly within an organization for its ongoing operations, such as forms, reports, and standard operating procedures.

Precise Number

A numerical value defined with exactitude, without approximation or rounding.

Finished Product

A product that has completed the manufacturing process and is ready for sale or distribution.

SCM

Stands for Supply Chain Management, which involves the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage.