Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) Retail stores do not have a production cycle.
• B) Financial institutions have installment-loan cycles.
• C) A service company does not have an inventory system.
• D) Every organization should implement every transaction cycle module.

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Definitions:

MC = MR

A principle in economics stating that profit maximization occurs when a firm's marginal cost (MC) equals its marginal revenue (MR).

Marginal Revenue

The additional income gained from selling one more unit of a good or service.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers, typically downward-sloping.