Kemar Owns a Small Web-Development Startup and Has Experienced a 23

question 221

Multiple Choice

Kemar owns a small Web-development startup and has experienced a 23% increase in overhead costs over the last three years.To cut costs,Kemar has scaled back the number of employees working in the office on a daily basis and is thinking about homeshoring as a viable option to further trim expenses. Required:
Which of the following is a potential drawback of homeshoring?​

• A)​increased supervision
• B)​decreased service demand
• C)​decreased employee productivity
• D)​increased use of energy and resources
• E)​increased expenses for health insurance

Understand the implications of elasticity on taxing and public policy.

Assess the effects of advertising on elasticity of demand.

Understand the concept of price elasticity of demand and its determinants.

Recognize the difference between short-run and long-run elasticity of demand.

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Definitions:

Sales

Revenue earned from the exchange of goods or services during a specific period.

Direct Approach

A method used in cash flow statements where cash receipts and payments are reported directly to calculate net cash from operating activities.

Indirect Approach

A method used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate operational cash flow.

Investing Activities

Transactions involving the purchase or sale of long-term assets and other investments, part of a company's cash flow analysis.