A Firm Can Stay in Business While Taking a Loss

question 11

Multiple Choice

A firm can stay in business while taking a loss in the short run as long as it covers its

• A)fixed costs.
• B)variable costs.
• C)fixed and variable costs.
• D)A firm can never stay in business when it experiences losses.

---

Definitions:

Intellectual Asset

Knowledge, information, or a creative expression that has value to an organization or individual, often protected by intellectual property rights.

Knowledge

The information, understanding, and skills gained through experience or education; the theoretical or practical understanding of a subject.

Wisdom

Wisdom is the ability to use knowledge and experience with insight and judgement to make well-informed decisions.

Viscous

Describes a fluid's resistance to flow; fluids with higher viscosity flow more slowly, as in the case of honey or oil.