Which of the Following Strategies Can a Company Use to Decrease

question 52

Multiple Choice

Which of the following strategies can a company use to decrease its breakeven point?

• A) Hiring more employees
• B) Raising prices
• C) Increasing variable costs
• D) Increasing fixed costs

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.

Liquidity

A company's ability to meet its short-term obligations using its most liquid assets, indicating financial health.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Working Capital

Working capital is the difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.