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:

Hostile Takeover

The acquisition of one company by another without approval from the target company's management.

Market Price

The contemporary market cost for acquiring or disposing of assets or services.

Chapter 11 Bankruptcy

A legal process that allows businesses to reorganize under bankruptcy laws of the United States, enabling them to keep operating while restructuring their debts.

Chapter 7 Bankruptcy

A legal process providing for the liquidation of a debtor's assets to pay off creditors under the U.S. bankruptcy code.