Terms Such as "Acquisition," "Merger," "Diversification," and "Global Expansion" Signal

question 42

True/False

Terms such as "acquisition," "merger," "diversification," and "global expansion" signal an underlying growth strategy.

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Definitions:

Fixed Cost

Expenses that do not vary with the level of output or sales, such as rent, salaries, or insurance premiums.

Variable Cost

Expenses that vary in proportion to the volume of goods or services produced in a business.

Opportunity Cost

The forfeiture of potential benefits from other options by selecting a specific one.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.