Assume you are the owner of a video-rental store.Which of the following would be classified as a long-term decision?
A)Purchase of children's video inventory.
B)Purchase of cleaning supplies.
C)Deciding whether to purchase a new building.
D)Deciding whether to hire a new hourly employee for the summer.
E)None of the above is a long-term decision.

Question

Quizplus · Accepted Answer

Deciding whether to purchase a new building is a long-term decision as it involves a significant investment and will have long-term implications for the business, such as potentially affecting the location and property values. Choosing to purchase inventory or cleaning supplies are short-term decisions that don't have a major long-lasting impact on the business. Deciding to hire a new hourly employee for the summer is also a short-term decision as it only affects the business for the duration of the summer.

Assume You Are the Owner of a Video-Rental Store