AB Distributors Is a Company That Serves as a Shipping

question 73

Multiple Choice

AB Distributors is a company that serves as a shipping intermediary for other companies. Its sales revenue has increased from the previous year. Jonathan, a sales manager at AB, says, "Since the company has increased its revenue, it is now more profitable." Which of the following points out a flaw in Jonathan's reasoning?

• A) Information about the company's expenses is necessary to tell whether it is profitable.
• B) AB Distributor may have lost money the previous year.
• C) Most of AB Distributor's employees are relatively new.
• D) Not all of the revenue may contribute toward profits.
• E) Many of AB Distributor's competitors may not be doing as well.

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Definitions:

Bargaining

The process of negotiating terms and conditions between two or more parties with the aim of reaching a mutually acceptable agreement.

Win-Win Conflict

A resolution strategy where all parties involved come out ahead or benefit from the solution.

Mutual Benefit

A situation or agreement in which all parties involved gain advantages or positive outcomes.

Optimising

The process of making something as effective, perfect, or functional as possible through careful adjustments and improvements.