In 2006, Ford Motor Company Announced It Would Severely Cut

question 69

Multiple Choice

In 2006, Ford Motor Company announced it would severely cut back its automobile production. For parts companies supplying Ford its parts, this represented a(n)

• A)weakness.
• B)opportunity.
• C)strength.
• D)threat.
• E)strategic plan.

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Definitions:

Probable Loss

An anticipated financial loss that is likely to occur because of existing conditions or events.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and stockholders' equity at a specific point in time.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health.

Wages and Salaries

Wages and Salaries refer to the regular compensation paid to employees for their labor or services in executing their job responsibilities.