Suppose That a Plant Has a Daily Productivity of 0

question 26

Multiple Choice

Suppose that a plant has a daily productivity of 0.85 parts per employee? What can we conclude?

• A) the plant must be very labor-intensive
• B) the plant is not earning profits
• C) the plant must be highly automated
• D) the plant should lay off workers
• E) nothing

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Definitions:

Subsidiary Company

A company that is controlled by another company, typically referred to as the parent company.

Dividend Income

Earnings received by shareholders from their investment in a corporation's stocks, typically in the form of cash dividends.

Investment in Associates

A long-term investment in another company where the investor holds a significant but not majority stake, typically 20%-50% of the voting stock.

Equity Method

An accounting technique used to record investments in associate companies, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor's share of net assets of the investee.