The difficulty of controlling a large company with many product lines and divisions is an example of a diseconomy of scale.
Answer the following statement true (T) or false (F)
True
Larger companies are more difficult to coordinate and control. Although size may enhance efficiency by spreading fixed costs over more units, it also may create bureaucratic hassles that constrain performance. Diseconomies of scale are the costs of being too big.
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All of the following may be exit barriers EXCEPT
a. employee health benefit costs. b. treatment, storage and disposal costs. c. penalties for terminating contracts with raw material suppliers. d. increasing opportunity cost of production.
Paolo has been offered jobs at two different retail companies and needs to decide which one to accept. Which of the following can be a useful clue about each organization's culture?
A. the way employees interact with customers B. the industrial environment C. information printed in the media about stock prices D. the personality characteristics of employees E. the macroenvironment
On July 7, University Bank lent $530,000 to Jazz Music Shop on a 60 day, 7% note. What is the maturity value of the note? (Use a 360-day year and round answers to the nearest dollar.)
A) $530,000 B) $567,100 C) $536,099 D) $536,183
Dividing the standard deviation of the returns of a stock by the stock's expected return gives us the stock's _____.
A. variance B. risk premium C. coefficient of variation D. beta E. correlation coefficient