Which of the following is a definition of the firm: I) Firm is legal entity; II) Firm is a value creation process; III) Firm is a collection of investment and financing opportunities; IV) Firm is a nexus of incomplete contracts.

Which of the following is a definition of the firm: I) Firm is legal entity; II) Firm is a value creation process; III) Firm is a collection of investment and financing opportunities; IV) Firm is a nexus of incomplete contracts.




a. I and II only
b. I and III only
c. I, II, and III only
d. I, II, III, and IV


Answer: D


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