Which of the Following Actions-All Else Equal-Will Decrease a Firm's

question 61

Multiple Choice

Which of the following actions-all else equal-will decrease a firm's EVA?

• A)The firm raises its prices but ships the same amount of product.
• B)The firm reduces its inventory.
• C)The firm increases its borrowing to repurchase some of its shares.
• D)The firm increases its accounts receivable.

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Definitions:

Seller

A seller is an individual or entity that offers goods or services for sale in the market.

Buyer

An individual or entity that acquires goods or services in exchange for money, playing a crucial role in the dynamics of supply and demand in the marketplace.

Social-Cost Curve

illustrates the total cost of producing a good or service, including both private costs incurred by businesses and external costs borne by society.

Private Cost

The cost of a production activity that is directly borne by an enterprise.