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:

Changes in Equity

Adjustments in a company's equity section of the balance sheet, including changes due to profits, losses, dividends, and issuance or repurchase of shares.

Operating Activities

The day-to-day activities of a company involved in producing and selling its products or services, which are reflected in its net income.

Cash Flow Reporting

A financial statement segment that provides information on the cash inflows and outflows of an entity during a specific period.