Assume You Are in the Business of Producing and Selling

question 190

Multiple Choice

Assume you are in the business of producing and selling frames. If you could produce more frames with the same input, what would happen to your productivity and profits assuming the price of your frames remains the same?

• A) Increase in productivity, decrease in profits.
• B) Increase in productivity, increase in profits.
• C) Decrease in productivity, decrease in profits.
• D) Decrease in productivity, increase in profits.

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Definitions:

Liabilities

Liabilities refer to the financial obligations or debts that a company owes to others, which must be paid back in the future.

Private Company

A business entity owned by private investors, shareholders or owners, and not publicly traded on stock exchanges.

ASPE

A collection of accounting principles for private corporations in Canada.