A Factor That Has a Strong Influence on a Company's

question 103

Multiple Choice

A factor that has a strong influence on a company's costs is termed:

• A) a cost driver.
• B) economies of scale.
• C) an expense reduction program.
• D) operating margin shortfalls.
• E) All of these.

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Definitions:

Preferential Unsecured Creditor

A creditor who is not secured by collateral but has the right to be paid before other unsecured creditors in the event of a debtor's bankruptcy.

Trade Creditors

Entities to whom money is owed for goods and services provided in the normal course of business, but which has not yet been paid.

Liquidator's Fee

Charges or payments made to a liquidator for the process of winding up a company, disposing of its assets, and discharging its liabilities.

Voluntary Winding Up

A process initiated by a company's shareholders to dissolve the company in an orderly manner, liquidating assets to pay creditors and distributing any remaining assets.