"Operations Restructuring" Involves

question 9

Multiple Choice

"Operations restructuring" involves:

• A)improving the working-capital-to-sales relationship
• B)postponing due dates for interest and principal payments
• C)selling off fixed assets
• D)cutting costs relative to the venture's revenues
• E)a and c above
• F)b and d above

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Definitions:

Gross Margin

Gross margin is the difference between revenue and cost of goods sold (COGS) expressed as a percentage of revenue, indicating the efficiency with which a company produces goods.

Operating Expenses

Expenses incurred through normal business operations, such as rent, utilities, and salaries, but not including cost of goods sold.

Statement of Stockholders' Equity

A financial document showing changes in the value of a company’s equity over a specific period, including shares issued, dividends paid, and earnings retained.

Retained Earnings

The residual net income available to a business after distributing dividends to its shareholders.