Asked by
Isaiah schwartz
on Oct 12, 2024
Verified
Which is the most accurate statement?
A) There is basically no real difference between shutting down and going out of business.
B) One big difference between shutting down and going out of business is that after you've shut down you're still paying bills,but when you've gone out of business,there are no more bills to pay.
C) When you shut down you must still pay your variable costs,but when you go out of business you have no costs at all.
D) Shutting down is a long run option,while going out of business is a short run option.
Variable Costs
Costs that vary directly with the level of production or sales volume.
Shutting Down
The process of ceasing operations or closing a business, often temporarily or permanently, due to various reasons such as financial difficulties or strategic decisions.
Going Out of Business
The process of closing down all operations of a company, often due to financial troubles or bankruptcy.
- Differentiate between short-run and long-run operational decisions, including shutdowns and going out of business.
Verified Answer
GB
Learning Objectives
- Differentiate between short-run and long-run operational decisions, including shutdowns and going out of business.