Why Does Company Profitability Decrease in Direct Proportion to the Payroll

question 62

Multiple Choice

Why does company profitability decrease in direct proportion to the payroll expenses?

• A) Because payroll represents an asset and an income of the business. The higher payroll incomes are, the higher the profitability will be.
• B) Because payroll represents an asset and an income of the business. The lower the payroll expenses are, the higher the profitability will be.
• C) Because payroll represents a liability and an expense of the business. The higher payroll expenses are, the lower the profitability will be.
• D) Because payroll represents a liability and an expense of the business. The lower payroll expenses

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Definitions:

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a guide published by the American Psychiatric Association for diagnosing mental disorders.

Diagnose

The process of identifying a disease or condition from its symptoms through systematic analysis and investigation.

Levels

Different stages or degrees of magnitude in a particular hierarchy or system.

Insane

A term historically used to describe severe mental disorder or irrational behavior, now considered outdated and stigmatizing.