Which of the Following Statements Is CORRECT

question 293

Multiple Choice

Which of the following statements is CORRECT?

• A) A firm does not need to take into account its sunk cost when making current decisions.
• B) Long-run decisions are easily reversed.
• C) Short-run decisions are not easily reversed.
• D) In the long run, a firm can change its plant but not the quantity of its labor.

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Definitions:

Operational Growth

The expansion of a company's operational capacity, often leading to increased output, efficiency, or market share.

Strategic Planning

The process of defining an organization's strategy or direction and making decisions on allocating resources to pursue this strategy.

Business Planning

The process of creating a detailed plan outlining a company's goals, strategies, resources, and projected financial performance over a certain period.

Financial Planning

The process of evaluating an individual's or organization's current financial status and creating strategies to achieve future financial goals.