Assume a Company Wants to Increase Its Profitability

question 68

Multiple Choice

Assume a company wants to increase its profitability.Which of the following would be inconsistent with the company's objective?

• A)Operate more efficiently
• B)Maintain price while increasing the size or amount of the product
• C)Reduce costs while maintaining the quality of the product
• D)Raise prices while increasing the quality of the product

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Definitions:

Primary Market

The market where new securities are issued and sold for the first time, directly from the issuer to investors.

First-Time Issues

Refers to the initial offering of securities or stocks to the public by a company.

Securities

Financial instruments representing ownership (stocks), creditor relationships (bonds), or rights to ownership (options).

Primary Market Transaction

Occurs when new securities are sold for the first time to investors, directly impacting the issuing company's capital.