Which One of the Following Actions Applies to a Level

question 51

Multiple Choice

Which one of the following actions applies to a level strategy?

• A) Hire workers to increase production output to match increases in demand requirements.
• B) Build anticipation inventory to meet the variability in demand.
• C) Decrease production output to match any decreases in demand requirements.
• D) Use promotional campaigns to boost demand.

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Definitions:

Earnings Per Share

A metric for assessing a company's earnings, determined by dividing its net income by the total outstanding common stock shares.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with fixed dividends.

Cumulative Preferred Stock

A type of preferred stock whose dividends accumulate if not paid in the agreed periods.

Par Value

The nominal or face value of a stock or bond as stated by the issuer, often used in the accounting of capital accounts.