Which of the Following Should Tend to Decrease the Firm's

question 3

Multiple Choice

Which of the following should tend to decrease the firm's profitability?
1) a decrease the speed with which receipts are processed
2) an increase in the allowance for doubtful accounts
3) riding the credit of the firm's suppliers​

• A)​1 and 2
• B)​1 and 3
• C)​2 and 3
• D)​1, 2, and 3

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Definitions:

Public Transit

A system of various transport modes such as buses and trains operated by a city or region to provide a shared travel service to the public.

Labour Cost

The total amount of money that businesses have to pay to their employees, encompassing wages, benefits, and taxes.

Sensitivity

The degree to which the output of a model or system reacts to changes in input parameters or assumptions.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.