As a Result of Recent Downsizing at His Firm, Dominic

question 45

Multiple Choice

As a result of recent downsizing at his firm, Dominic lost his job as an IT manager for a large telecommunications company. A true, self-confirmed computer nerd, Dominic knew that several of his past contacts often outsourced their computer problems. He decided it was a good time to test the waters and see if he could secure enough computer clients to be in business for himself. His success demonstrated that

• A) starting your own business can quickly provide security and profits.
• B) people always tend to hire people they know from past associations.
• C) the service sector is not an area of significant growth.
• D) successful big businesses often create profitable opportunities for small businesses.

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Definitions:

Dividends Paid

Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Cost of Sales

Direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Inventories

The complete list of items such as property, goods in stock, or the contents of a building.

Accounts Payable

The amounts due by a company to its suppliers or creditors for goods and services received but not yet paid for.