What is the primary source of decreasing expenses in a troubled company?
A) Advertising
B) Workforce reduction
C) Underutilized assets
D) Working capital

Question

Quizplus · Accepted Answer

Workforce reduction is often the primary source of decreasing expenses in a troubled company as labor costs typically make up a significant portion of a business's expenses. By reducing the number of employees, a company can save on salaries, benefits, and other related costs. While underutilized assets and working capital can also contribute to decreasing expenses, they may not be as immediate or significant as reducing the workforce. Advertising is not typically a significant expense for troubled companies and may actually be necessary to attract new customers and increase revenue.

What Is the Primary Source of Decreasing Expenses in a Troubled