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Firms may often find that they have different divisions with differing degrees of risk. one way to adjust for this in capital budgeting is to any cash balances.

A firm is a commercial enterprise, usually set up as a partnership, that provides professional services such as legal and accounting services. Corporate theory assumes that companies exist to maximize profits.

In general, the definition of "company" in the field of economics is any business that seeks to make a profit by producing or selling products or services (or both) to consumers. For example, one of the most common uses of the term is "law firm", which typically provides legal-related services.

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