What Is One Reason Why It Is a Bad Idea

question 58

Short Answer

What is one reason why it is a bad idea for a company to have excess capacity?
Wastes raw materials
Increases customer dissatisfaction
Ties up money in extra machines
Decreases form utility
Slows delivery of product

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Definitions:

Dissolution

The process by which a company's existence is legally terminated.

Termination

The act of ending or concluding something, such as a contract, employment, or agreement.

Misrepresentation

Deliberately providing false information to another party, leading them to make decisions they otherwise wouldn't have.

Reliance

In legal terms, it refers to the act of trusting or acting based on the promises or statements of another party, often relevant in contract law.