Which of the following factors would tend to reduce a firm's business risk?
A. The firm changes its operations to make them more cyclical.
B. The firm increases its operating leverage.
C. The firm increases the fixed costs that are associated with the manufacture of its products.
D. The firm shifts its sales strategy in an effort to sell substantially more high-priced durable goods than low-priced staple goods, which reverses the sales trend that occurred during the past decade.
E. The firm takes actions to improve the stability of its day-to-day operations.
Answer: E
You might also like to view...
The payback period provides information to managers that can be used to help
A) control the risks associated with the uncertainty of future cash flows. B) minimize the impact of an investment on a firm's liquidity problems. C) control the risk of obsolescence. D) control the effect of the investment on performance measures. E) all of these.
Congress passed a law imposing penalties for displaying "indecent" material online where children could see it. If the U.S. Supreme Court subsequently rules that the statute conflicts with the First Amendment of the U.S. Constitution, the statute is void
a. True b. False Indicate whether the statement is true or false
Heathman Inc. produces and sells a single product. The selling price of the product is $230.00 per unit and its variable cost is $89.70 per unit. The fixed expense is $308,660 per month. The break-even in monthly unit sales is closest to:
A. 2,200 units B. 3,441 units C. 2,328 units D. 1,342 units
In a completely randomized experimental design involving five treatments, 13 observations were recorded for each of the five treatments (a total of 65 observations). Also, the design provided the following information. ? SSTR = 300 (Sum of Squares Due to Treatments)SST = 800 (Total Sum of Squares)? The mean square due to treatments (MSTR) is
A. 60.00. B. 10.00. C. 75.00. D. 12.00.