Compared to Firms That Provide a Good Lifestyle for the Owner

question 28

Multiple Choice

Compared to firms that provide a good lifestyle for the owner but little in the way of attractive returns, a firm with potential for high growth and large profits has _____ possible sources of financing.

• A) fewer
• B) about the same number of
• C) more
• D) many more

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Definitions:

Retrenchment

A retrenchment or turnaround strategy occurs when an organization finds that its current operations are not effective, and major changes are usually needed to rectify the problem. In most cases, this strategy involves rightsizing the organization by closing operations, shutting down factories, and terminating employees in order to get back on the right track.

Executive Succession

Involves systematically planning for future promotions into top management positions.

Development Costs

Expenses associated with the development of new products, services, or processes.

Future Impact

The potential effects or consequences of actions, decisions, or events on the future.