In Terms of Business Strategy,managers Will Attempt to Adopt Business

question 11

Multiple Choice

In terms of business strategy,managers will attempt to adopt business strategies that

• A)maximize transaction costs.
• B)stabilize opportunity costs.
• C)minimize transaction costs.
• D)minimize sunk costs.

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Definitions:

Profit

Profit refers to the financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Corn Future

A standardized contract to buy or sell a specified amount of corn at a future date and price, traded on commodities exchanges.

Spot Price

The prevailing market rate where a specific asset, including commodities, currencies, or securities, can be purchased or sold for prompt distribution.

Loss

The reduction in the value of an investment or the difference between the purchase price and the lower selling price.