The major incentive for cost minimization is the
A)power of shareholders in the company.
B)fear of top management by workers.
C)discipline imposed by the market system.
D)impact on U.S.corporations of taxing by the government.

Question

Quizplus · Accepted Answer

The discipline imposed by the market system is the major incentive for cost minimization. Companies that are able to reduce their costs are more competitive in the market and able to offer their products or services at a lower price than their competitors, which attracts more customers and helps the company to increase their market share and profits. This is a key driving force behind cost minimization in businesses. The power of shareholders, fear of top management by workers, and the impact of taxing by the government may all play a role in a company's decision-making, but they are not the major incentive for cost minimization.

The Major Incentive for Cost Minimization Is the