Which of the Following Is NOT a Reason That a Firm

question 8

Multiple Choice

Which of the following is NOT a reason that a firm might want to abandon products or markets?

• A)The market environment has changed,making a product less profitable.
• B)The firm has entered areas in which it does not have expertise.
• C)The economic climate is showing signs of recovery.
• D)The firm has grown too fast.
• E)The firm has not properly researched foreign markets which it has entered.

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Definitions:

Credit Policies

Guidelines established by businesses to determine to whom they will extend credit and on what terms.

Net Sales

The total revenue from sales after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Accounts Receivable Turnover

A financial metric that measures how often a company collects its average accounts receivable within a specified period, indicating the efficiency of credit and collections.

Total Sales

The aggregate revenue a company generates from selling its goods or services within a specific period.