Which One of the Following Is Not a Recommended Step

question 60

Multiple Choice

Which one of the following is not a recommended step individuals can use to weather a future financial crisis?

• A) Establish a smaller than usual emergency fund
• B) Consider converting investments to cash to preserve value
• C) Contact banks and credit card companies if you are unable to make payments
• D) Pay off credit cards
• E) Seek cheaper alternatives to frequently purchased items

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Definitions:

Transfer Price

The price at which divisions of a company transact with each other, such as the sale of goods or services, often used for budgeting and tax purposes.

Decentralization

The process of distributing or dispersing functions, powers, people, or things away from a central location or authority.

Operating Costs

Expenses associated with the day-to-day operations of a business, excluding the cost of raw materials and direct labor.

Cost Center

A department within an organization that does not directly add to profit but still incurs costs, such as HR or customer service departments.