In Deciding Whether to Drop Its Electronics Product Line,a Company's

question 63

Multiple Choice

In deciding whether to drop its electronics product line,a company's manager should ignore ________.

• A) the variable and fixed costs it could save by dropping the product line
• B) the revenues it would lose from dropping the product line
• C) the effect of dropping the electronics product line on the sales of its other products
• D) the amount of unavoidable fixed costs

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Definitions:

Labor Standards

Regulations and norms that determine the minimal acceptable conditions for workers' rights, wages, hours, and working conditions.

Core Labor Standards

A set of principles related to workers' rights that are universally recognized and promoted, including prohibition of child labor, forced labor, discrimination, and the encouragement of collective bargaining.

Shareholder Value

A business approach focused on increasing the long-term value of a company for its shareholders, often measured by stock price appreciation and dividends.

American Corporation

A business entity incorporated in the United States, subject to U.S. corporate laws, and often characterized by its pursuit of profit and expansion.