Business leaders create wealth by ________.
A) avoiding the cost of hiring employees
B) reducing their gross margins
C) hiring employees in order to sell more units and generate more profit
D) charging high prices to customers

Question

Quizplus · Accepted Answer

Hiring employees allows a business to produce and sell more products, which generates more profit and ultimately creates wealth for the business and its leaders. Avoiding the cost of hiring employees (A) may save money in the short term but does not lead to long-term wealth creation. Reducing gross margins (B) may increase sales, but it would decrease profits and wealth creation. Charging high prices to customers (D) can increase profits, but it may not necessarily create wealth for the business and its leaders in the long term.

Business Leaders Create Wealth by ________