The Financial Objective of Long-Term Solvency Is to

question 96

Multiple Choice

The financial objective of long-term solvency is to

• A) be able to pay bills when they fall due.
• B) earn a satisfactory net income.
• C) be able to increase stockholders' wealth.
• D) be able to survive for many years.

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Definitions:

Downsizing

The process of reducing the size of a company's workforce to cut costs, which can involve layoffs, selling parts of the business, or outsourcing.

Outsourcing

The practice of hiring third parties to perform services or create goods that were previously done in-house, often to cut costs or improve efficiency.

Core Business

The primary area of a company's operation or the main source of its profitability, representing its fundamental mission or the key focus of its commercial activity.

Noncore Business

Parts of a company's operations that are not essential to its main line of business or primary revenue source.