Which of the Following Is the Best Example of a Business

question 90

Multiple Choice

Which of the following is the best example of a business firm operating in a competitive price-taker market?

• A) TGIFriday's, a restaurant chain that operates in numerous locations
• B) a bookstore located a few blocks from a major university
• C) Ford Motor company, a major manufacturer of automobiles that operates in numerous markets throughout the world
• D) an Indiana hog farmer that raises pigs

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Definitions:

Employee Salaries

The monetary compensation paid to employees for their labor, typically on a monthly or yearly basis.

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit, but before income taxes and interest are deducted.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity levels, allowing for more accurate budgeting in variable cost areas.

Spending Variance

The difference between the actual spending and the budgeted or planned amount, often examined to manage and control expenses.