An Example of Putting the Short Term Considerations Ahead of the Long

question 35

Multiple Choice

An example of putting the short term considerations ahead of the long term planning is

• A) locking in a higher interest rate on debt when rates are expected to rise
• B) using more expensive but higher quality parts to manufacture a product
• C) reducing the warranty period from 1 year to six months to save money
• D) manufacturing large vehicles when gas prices are expected to rise
• E) increasing sales commissions for the sale of energy inefficent products

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Definitions:

Tariffs

Taxes imposed by a government on imported or exported goods, often used to regulate trade, protect domestic industries, or generate revenue.

Quotas

Limits or targets set on quantities, such as the maximum amount of goods that can be imported or the sales targets for individuals or teams.

Foreign Competition

Refers to the competitive pressure that domestic companies face from foreign companies in the same industry, impacting market share, pricing, and innovation strategies.

Tariffs

Taxes imposed on imported goods, often used to protect domestic industries or generate revenue.