If a Firm Gets So Large That Management of Employees

question 67

Multiple Choice

If a firm gets so large that management of employees and other resources becomes a costly problem, it will be experiencing

• A) diseconomies of scale.
• B) diminishing marginal product.
• C) constant returns to scale.
• D) economies of scale.

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Definitions:

Operating Activities

Business activities directly related to the production and delivery of goods and services.

Operating Activities

Activities related to the primary operations of a company, such as purchasing raw materials, producing goods, and selling products or services.

Financing Activities

Transactions involving changes in the size and composition of the equity capital and borrowings of the entity.

Investing Activities

include transactions involving the purchase or sale of long-term assets and investments that are not part of the company’s day-to-day business operations.