Das Work and Edge Tech Are Electronics Manufacturing Companies Competing

question 109

Multiple Choice

Das Work and Edge Tech are electronics manufacturing companies competing to serve the same customers.The labor-related expense per product for Das Work is $30 higher than that for Edge Tech.However,Das Work makes more profits than Edge Tech.In this case,which of the following actions has contributed to the profits made by Das Work?

• A) It produces high quality goods and charges more for these products than competitors.
• B) It does not provide overtime pay to employees who work more than 40 hours in one week.
• C) It has recently introduced the comparable-worth policy for employees.
• D) It provides free home delivery of purchased goods.
• E) It has a company website where customers can purchase goods online.

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Definitions:

Rate of Return

The increase or decrease in the value of an investment during a specific timeframe, represented as a proportion of the investment's initial outlay.

Commodity

A basic good used in commerce that is interchangeable with other commodities of the same type; common examples include grains, gold, beef, oil, and natural gas.

Derivative Markets

Financial markets for instruments like futures, options, and swaps, whose value is derived from an underlying asset such as commodities, stocks, or currencies.

Business Risks

Business risks refer to the exposure a company or organization has to factors that will lower its profits or lead it to fail.