Which of the Following Practices Can Help Businesses Gain a Cost

question 56

Multiple Choice

Which of the following practices can help businesses gain a cost competitive advantage?

• A)Using simplified production techniques
• B)Using expensive raw materials
• C)Customizing products with extra frills
• D)Focusing on serving marginal customers

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Definitions:

Joint Stock Company

A partnership agreement in which company members hold transferable shares while all the goods of the company are held in the names of the partners.

Limited Liability Company

An organizational model blending the direct taxation advantage of partnerships or sole proprietorships with the restricted liability characteristic of corporations.

Limited Partnership

A limited partnership is a form of partnership consisting of at least one general partner, who manages the business and is personally liable for partnership debts, and one or more limited partners, who are liable only to the extent of their investments.

Policies

Formal guidelines or rules established by organizations to govern decision-making and establish boundaries for behavior.