Which of the Following Actions Might a Firm Take If

question 10

Multiple Choice

Which of the following actions might a firm take if its actual sales growth exceeds its sustainable rate of growth?
I.Increase prices
II.Decrease financial leverage
III.Decrease dividends
IV.Prune away less marginal products

• A) I and II only
• B) I and III only
• C) I, II, and IV only
• D) I, III, and IV only
• E) I, II, III, and IV
• F) None of the above.

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Definitions:

Employees

Individuals hired by a company to perform tasks in exchange for compensation, typically through wages or salaries.

Statement Of Owner's Equity

A financial statement showing the changes in the equity of a company during a specific period, due to various factors like profits and losses.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership interest of the owners.

Certified Public Accountant

A designation given to accounting professionals who have passed the CPA exam and met additional state certification and experience requirements.