Janice Was Thrilled with the First Two Years of Operations

question 100

Multiple Choice

Janice was thrilled with the first two years of operations.Her new company-specializing in manufacturing and distributing yoga mats,props,and yoga wear-had been growing steadily and was on track to make a 14 percent profit at the end of this,her second year.Then she started to notice sales slipping in the 11th month of the year.This is a month that normally starts to see sales increases.She had just hired a key employee to work on business development,and she wondered if this downturn would trend into the 12th month and then into her third year of business.Thankfully Janice had some good advice when she launched her venture because she knew exactly how to handle the situation.Along with her business plan,she had created a(n) ________.

• A)employee management plan
• B)contingency plan
• C)downsizing plan
• D)strategic plan

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Definitions:

Price

The amount of money required to purchase a product or service, typically determined by supply and demand dynamics.

Marginal Rate

The rate at which one quantity changes with respect to a change in another, at the margin, especially in the context of cost or tax.

Utility Function

A representation in economics of how a consumer ranks different bundles of goods based on the level of satisfaction (utility) each bundle provides.

Consumption

The use of goods and services by households or the amount of goods and services bought or used.