Multiple Choice QuestionOverall, a company must be able to cover both Blank______ costs or it will eventually fail.Multiple choice question.principal and interestgoods and servicesfinancial and operatingemployee and shareholder
Question
Multiple Choice QuestionOverall, a company must be able to cover both Blank______ costs or it will eventually fail.Multiple choice question.principal and interestgoods and servicesfinancial and operatingemployee and shareholder
Solution
The correct answer is "financial and operating".
Step by Step Explanation:
-
Principal and interest: These are terms related to loans. While a company does need to cover these costs if it has loans, they are not the only costs a company has to cover to avoid failure.
-
Goods and services: These are what a company might sell to make money, not what it needs to cover to avoid failure.
-
Financial and operating: Financial costs refer to costs like interest on loans, while operating costs refer to the day-to-day costs of running a business. A company must be able to cover both these types of costs to avoid failure.
-
Employee and shareholder: While a company does need to pay its employees, "shareholder" costs don't make sense in this context. Shareholders invest in a company and get returns, but a company doesn't "cover" shareholder costs.
So, the correct answer is "financial and operating".
Similar Questions
Multiple Choice QuestionThe purchase price for each of the inputs required to produce a good or service is referred to in economics as Blank______.Multiple choice question.materials resource planningresource pricingsupply chain managementcost accounting
The value of the firm is Blank______ by the agency costs of equity.Multiple choice question.increasedreducedstabilized
Multiple Choice QuestionBecause a firm's entrepreneurs receive only the revenue left over after all other factors of production have been paid, they are considered Blank______.Multiple choice question.executivesstockholdersresidual claimantsincentive functions
Multiple Choice QuestionService firms should focus on _____ costs in managerial decisions.Multiple choice question.fixedvariable
Multiple Choice QuestionIn a competitive resource market, a firm is a price Blank______.Multiple choice question.takerfakermakerbreaker
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.