In Labor-Intensive Industries, the Most Serious Threat Faced by Low-Cost

question 30

Multiple Choice

In labor-intensive industries, the most serious threat faced by low-cost competitors is ________.

• A) increased use of technology
• B) increased public awareness of questionable labor practices
• C) increased product efficiency
• D) increased competition

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Preferred Dividends

Preferred dividends are payments made to preferred shareholders before any dividends are paid to common shareholders, usually fixed and based on a percentage of the par value of the shares.

Accounts Receivable Turnover

A financial ratio indicating how many times a company collects its average accounts receivable balance in a period.

Net Sales

The total revenue from sales of goods and services, after deducting returns, allowances for damaged or missing goods, and any discounts allowed.