If a Firm Is Not Covering the Cost of All

question 540

Multiple Choice

If a firm is not covering the cost of all resources employed by the firm (including the opportunity cost of resources owned by the firm) , it will generally

• A) go out of business in the long run.
• B) remain in business as long as the current conditions are unchanged.
• C) experience an increase in its stock price because investors will be attracted to it.
• D) attempt to expand the size of its operation.

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Definitions:

Equipment Used

Refers to the tools, machinery, and devices that are employed to carry out specific tasks within a work environment.

Job Enrichment

Adding more responsibilities and autonomy to a job, giving the worker greater powers to plan, do, and evaluate job performance.

Job Rotation

The practice of moving employees through a series of job assignments in different areas of the company to broaden their skills and experiences.

Employee Involvement

The degree to which employees are encouraged to contribute their ideas and participate in decision-making processes within an organization.