Which of the Following Is Least Likely to Limit the Ability

question 2

Multiple Choice

Which of the following is least likely to limit the ability of a firm to minimize production costs?

• A)Resistance by labor.
• B)The fact that the firm is a nonprofit organization.
• C)An increase in the amount of competition faced by the firm.
• D)Legislated input combinations for firms in particular industries, e.g, health care.

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Definitions:

Horizontal Analysis

A side-by-side comparison of two or more years’ financial statements.

Acid-Test Ratio

A financial metric used to evaluate a company's ability to pay off its current liabilities without relying on the sale of inventory.

Dividend Payout Ratio

A financial metric that shows the portion of a company's earnings paid out to shareholders as dividends.

Return on Assets

A financial ratio indicating how effectively a company is using its assets to generate profit.