Use the Following Data to Answer Questions 77-87

question 50

Multiple Choice

Use the following data to answer questions 77-87.
-Refer to the data on Expected Demand for Acme Widgets.If the company has information that demand is going to be high,what is the option that the company should choose?

• A)Build capacity
• B)Do nothing
• C)Outsource
• D)either Build capacity or Do nothing

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Definitions:

Equity Section

The portion of a company’s balance sheet that represents the owners' or shareholders' interest in the company.

Equity Method Investments

Accounting technique used by a company to record its investment in another company when it has significant influence but does not have a majority control.

Cash Dividends

Payments made by a corporation to its shareholders from earnings, typically on a quarterly basis, in the form of cash.

Available-for-sale Debt Investment

Debt securities not classified as held-to-maturity or trading securities, and can be sold in the short-term for liquidity purposes.