In the context of small businesses, which of the following is an alternative for improving profits?
A) Increasing productivity of people and machines
B) Selling products on the basis of price alone
C) Buying all components of the product from the outside
D) Removing a summer product from a winter line of products

Question

Quizplus · Accepted Answer

Increasing productivity of people and machines can lead to higher output without increasing costs, which in turn can lead to improved profits. Selling products on the basis of price alone may attract customers in the short-term, but can ultimately lead to reduced profits if prices are too low. Buying all components of the product from the outside can reduce costs but may also lead to a reduction in quality. Removing a summer product from a winter line of products may reduce costs, but could also result in reduced revenue if customers are interested in purchasing the product. Therefore, the best choice for improving profits in the context of small businesses is to increase productivity of people and machines.

In the Context of Small Businesses, Which of the Following