Regulation Refers to

question 171

Multiple Choice

Regulation refers to

• A) the restrictions that state and federal laws place on business with regard to the conduct of its activities.
• B) constraints placed on businesses for activities that are legal but unethical.
• C) society's values and standards that are enforceable in the courts.
• D) requirements concerning which customers a firm may serve or not serve.
• E) the moral principles and values that govern the actions and decisions of an individual or group.

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Definitions:

Incremental Cash Flow

The additional cash flow a company receives from undertaking a new project, after accounting for the expenses involved in the project.

Variable Costs

Costs that change in proportion to the level of production or sales activities, such as materials and labor.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Research And Development

Research and development (R&D) refer to the activities companies undertake to innovate and introduce new products and services.