Which of the Following Factors Would Tend to Reduce a Firm's

question 54

Multiple Choice

Which of the following factors would tend to reduce a firm's business risk?

• A)The firm changes its operations to make them more cyclical.
• B)The firm increases its operating leverage.
• C)The firm increases the fixed costs that are associated with the manufacture of its products.
• D)The firm shifts its sales strategy in an effort to sell substantially more high-priced durable goods than low-priced staple goods, which reverses the sales trend that occurred during the past decade.
• E)The firm takes actions to improve the stability of its day-to-day operations.

Recognize the Federal Trade Commission’s role and structure, including the appointment of commissioners and their terms.

Identify the legal recourse available to businesses under FTC actions and the consequences of non-compliance.

Understand the division of regulatory responsibilities between the FTC and the Food and Drug Administration (FDA).

Grasp the consumer protection laws relating to credit and finance, including the Truth-in-Lending Act and the Fair Debt Collection Practices Act.

---

Definitions:

Closest Relatives

Organisms that are most closely related to each other through shared ancestry in the tree of life.

Animals

Multicellular, eukaryotic organisms of the kingdom Animalia or Metazoa, characterized by their ability to move voluntarily, consume organic material, breathe oxygen, and reproduce sexually.

Choanoflagellates

Aquatic microorganisms thought to be the closest living relatives of animals, characterized by their flagellum and collar structure.

Foraminiferans

Marine protozoans characterized by their porous shells, or tests, through which pseudopodia extend for feeding and locomotion.