If a Firm Wants to Cut Its Costs Through More

question 30

Multiple Choice

If a firm wants to cut its costs through more efficient production,we should assume that the firm is trying to:

• A) fire its employees.
• B) increase its profits.
• C) eliminate its competition.
• D) buy back its stock.
• E) gain control over its market.

---

Definitions:

Financing and Dividend Policies

Strategies a company uses regarding how it manages its capital financing, dividend payments to shareholders, and reinvestment in the business.

Financial Plan

A strategic roadmap designed to manage an individual's or an entity's current financial situation and future financial goals.

Sales Growth Expectations

Anticipations or forecasts about the future increase in sales revenue over a specified period.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its equity and while maintaining its existing debt-equity ratio.