A New Firm Is

question 64

Multiple Choice

A new firm is

• A) one that has been in business for 5 years or less.
• B) one that as not yet opened for business.
• C) one with less than 10 years experience.
• D) one that has become operational within the previous 12 months.
• E) one that opened its doors within the past 6 months.

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Definitions:

Compensation Costs

The total expenses incurred by an employer to provide wages, salaries, and benefits to their employees.

Outsourcing

The practice of hiring third parties to perform services, handle operations or provide goods that are traditionally executed or produced in-house.

Economies of Scale

Cost advantages that a business can achieve due to expansion, leading to a reduction in the per unit cost as production scales up.

Compensation Policies

Guidelines and strategies a company uses to determine how employees are paid, including salaries, bonuses, and benefits, ensuring fair and competitive remuneration.