Variable Factors of Production Are the Inputs That a Manager

question 150

Multiple Choice

Variable factors of production are the inputs that a manager:

• A) may adjust in order to alter sales.
• B) may adjust in order to alter production.
• C) cannot adjust in the short run.
• D) cannot adjust in the long run.

---

Definitions:

Future Cash Flows

The projected cash receipts and payments a company expects to incur over a certain period in the future.

Bond Ratings

Bond ratings are assessments made by credit rating agencies about the creditworthiness of a bond issuer, which affect the interest rates bonds carry.

Default Risk

The risk that a borrower fails to make the promised loan or bond repayments to the lender or bondholders.

Maturity Risk

The risk associated with the length of time until the face value of an investment is returned, affecting its susceptibility to interest rate changes.