Page 267 - E2 Integrated Workbook STUDENT 2018
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Supplementary objective test questions
CHAPTER 12 – THE FINANCE FUNCTION
12.1 In transaction cost theory, there are a number of types of asset specificity,
which help to determine transaction costs.
Which of the following are types of asset specificity? Select all that apply.
A Physical asset
B Technological
C Temporal
D Human asset
E Dedicated asset
F Intangible asset
12.2 Management must build relationships with a variety of professional advisors
who will be able to provide knowledge and advice to the organisation to aid
decision making. For example, Solicitors, Tax Consultants, Insurance Brokers,
IT specialists or Environmental Advisors.
Which of the following would be examples of when to use professional
advisers? Select all that apply.
A Company sales are low
B Company profits are high
C The company is about to enter into an important contract
D Your company is being sued or is suing someone.
E The company is considering bringing in new finance.
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