If upper management is NOT satisfied with a division's current profit margin, which of the following strategies would they most likely recommend?
A) Reduce the level of assets owned by the division
B) Reduce either product costs or operating expenses or both
C) Invest in more assets for the division
D) Locate new equity investment funds

Question

Quizplus · Accepted Answer

To increase profit margin, it is logical to reduce either costs or expenses, or both. A reduction in assets owned by the division (choice A) may not necessarily lead to an increase in margins, and investing in more assets (choice C) may not be cost-effective. Locating new equity investment funds (choice D) may not necessarily address the issue at hand. Therefore, reducing costs or expenses (choice B) is the most likely strategy they would recommend.

If Upper Management Is NOT Satisfied with a Division's Current