Question

All business firms make critical judgements to determine how much output to produce. in order to make these judgements effectively, what must the decision makers in any firm understand?
a)the relationship between cost and profit
b)the ratio of unsecured debt and total revenues
c)the ratio of salaried supervisors to hourly workers
d)the relationship between stockholders and the board of directors

Answer 1

The GDP allows corporate economists to estimate future production goals based on figures collected from foreign sources.

Answer 2

Answer:

The correct answer toall business firms make critical judgements to determine how much output to produce. in order to make these judgements effectively, what must the decision makers in any firm understand? Is: B) the ratio of unsecured debt and total revenues

Explanation:

All right to understand this question we need to analyze all of the options.

a) Cost and profit should relate to the final price for the product as well as the calculated amount of potential income before operations expenses. So even though it looks nice it's incorrect.

b) unsecured debt and total revenues are correct because after analyzing the amount of money that will represent their expenses for operations they can figure out how much capital they can invest in production. So it is correct.

c) The ratio of salaried supervisors to hourly workers could be representative but we have it covered with full company operations above, so it's incorrect because operating expenses are more than just salaries.

d) The relationship between the board and the stockholders is not the case because it can't really influence how much money is going to be invested. So it is incorrect.