Which of the Following Is Part of a Firm's Financial

question 107

Multiple Choice

Which of the following is part of a firm's financial structure but NOT a component of its capital structure?

• A) Retained earnings
• B) Mortgage bonds
• C) Accounts payable
• D) Both A and C

---

Definitions:

Diseconomies of Scale

A situation where an increase in production leads to higher average costs for firms, contrary to economies of scale.

ATC

Average Total Cost, the total cost divided by the quantity of output produced; it's a measure of per-unit production cost.

MC

Short for marginal cost, it represents the change in total cost that arises when the quantity produced is incremented by one unit.

Herfindahl Index

An economic measure of market concentration, calculated by summing the squares of the market shares of all competitors within an industry.