Which One of the Following Conditions Can Make a Level

question 101

Multiple Choice

Which one of the following conditions can make a level strategy the most attractive?

• A)The cost of changing the workforce levels is low.
• B)Products complementary to the existing products can be produced easily with the given facilities.
• C)The shelf life of the goods being produced is limited.
• D)Inventory-holding costs are high.

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the strategic goals of an organization.

Cash Poor

A situation in which an individual or entity has assets but lacks readily available cash to meet immediate spending needs.

Payback Period

The payback period is the length of time required to recover the cost of an investment.

Rate Of Return

A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.