With Inventory Control and Financial Problems, the Owner of Baker's

question 66

Multiple Choice

With inventory control and financial problems, the owner of Baker's Dozen, Inc. is considering the following alternatives: reduce inventory, lay off people, file for bankruptcy, or sell the business. The owner is using which management function?

• A) Decision-making
• B) Staffing
• C) Organizing
• D) Motivating
• E) Leading

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Definitions:

Marginal Cost

The rise in overall expenses resulting from the production of an extra unit of a product or service.

Elasticity of Demand

The degree to which the quantity demanded of a good or service varies with its price. Generally, a high elasticity indicates that demand is sensitive to price changes.

Inverse Demand Curve

Another term for the inverse demand function, it graphically represents how price depends on the quantity demanded, illustrating the relationship inverse to the demand curve.

Total Revenue

The total amount of money received by a company from selling goods or services before any expenses are deducted.