Why Do Decreases in Company Profitability Decrease in Direct Proportion

question 31

Multiple Choice

Why do decreases in company profitability decrease in direct proportion to the payroll expenses?

• A) Because payroll represents a liability and an expense of the business.The higher payroll expenses are,the lower the profitability will be.
• B) Because payroll represents an asset and an income of the business.The higher payroll income are,the higher the profitability will be.
• C) Because payroll represents a liability and an expense of the business.The lower payroll expenses are,the lower the profitability will be.
• D) Because payroll represents an asset and an income of the business.The lower the payroll expenses are,the higher the profitability will be.

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Definitions:

Macronutrient

A type of nutrient required in large amounts in the diet, which includes proteins, fats, and carbohydrates.

Calories

A measure of energy expenditure, with one calorie defined as the amount of heat needed to raise the temperature of one kilogram of water by one degree Celsius.

Fats

Macronutrients that are a major source of energy for the body and play crucial roles in hormone production and nutrient absorption.

Glycemic Index

A system that ranks foods on a scale from 0 to 100 based on their effect on blood sugar levels.