A Company's Manager Would Consider Which of the Following in Deciding

question 189

Multiple Choice

A company's manager would consider which of the following in deciding whether to discontinue its electronics product line?

• A)The costs it could save by discontinuing the product line
• B)The revenues it would lose from discontinuing the product line
• C)How discontinuing the electronics product line would affect sales of its other products (like CDs)
• D)All of the above

---

Definitions:

Current Ratio

A financial metric assessing a firm's capacity to cover its short-term debts using assets due within the same period.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Current Liabilities

Current liabilities are obligations a company must pay within one year, including accounts payable, short-term loans, and taxes owed.

Note Issuance

The process of creating and distributing a debt security or promissory note, promising to pay back a specified amount of money at a future date.