According to the Law of Increasing Costs,as a Textile Company

question 261

Multiple Choice

According to the law of increasing costs,as a textile company spends more money to eliminate dust particles from the workplace to increase worker safety

• A)the cost of reducing 70 percent of the dust in the factory will be the same as the cost of reducing the first 50 percent of the dust in the factory.
• B)the cost of reducing 70 percent of the dust in the factory will be less than the cost of reducing the first 50 percent of the dust in the factory.
• C)the cost of reducing 70 percent of the dust in the factory will be greater than the cost of reducing the first 50 percent of the dust in the factory.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders in the form of cash.

Stockholders' Equity

The ownership interest of shareholders in the net assets of a corporation, represented by the difference between total assets and total liabilities.

Liabilities

Financial obligations or debts that a company owes to others, such as loans, accounts payable, and mortgages.

No-Par Stock

Refers to stocks issued without a specified face value but instead are sold at a price determined by the issuing company.