Organizations Counter the Pressures They Experience in Their Business Environments

question 31

Multiple Choice

Organizations counter the pressures they experience in their business environments in multiple ways. Which of the following is NOT an effective way to counter these pressures?

• A) reactive actions
• B) anticipative actions
• C) adaptive actions
• D) retroactive actions

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Definitions:

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and loan payments.

Output Level

The total amount of goods or services produced by a business, sector, or economy within a specific timeframe.

Average Variable Cost

The total variable costs (like labor and materials) divided by the quantity of output produced, indicating the variable cost per unit.

Variable Cost

Costs that change in proportion to the activity of a business, such as materials and labor costs.