Which of the Following Is Not a Good Option for Trying

question 64

Multiple Choice

Which of the following is not a good option for trying to remedy high internal costs vis-à-vis rivals firms?

• A) Investing in productivity-enhancing, cost-saving technological improvements
• B) Redesigning the product or some of its components to permit more economical manufacture or assembly
• C) Implementing aggressive strategic resource mapping to permit across-the-board cost reduction
• D) Outsourcing high-cost activities to vendors or contractors who can perform them more economically
• E) Relocating high-cost activities (like manufacturing) to geographic areas (like China or Latin America or Eastern Europe) where they can be performed more cheaply

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Definitions:

Taxpayers

Individuals or entities obligated to pay taxes to governmental authorities.

Income Tax

A tax imposed by the government directly on individuals' or organizations' income.

Proportional Tax

At the individual level, a tax whose average tax rate remains constant as the taxpayer’s income increases or decreases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) remains constant as GDP rises or falls.

Economy

The system by which a country's money and goods are produced and used, encompassing production, distribution, and consumption.