The answer to this is none of the above. Small lean mean agencies which operate on low overheads and do quality work by hiring experts on job basis are not in the choices. They are not regarded as hot, advertising, or cold shops.
Premium is not included in all contracts.
Offer is very important, time requirements is also a must in a contract, consideration is also stated in the contracts, but premium is not included in the contract.
Answer:
option A
Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period are paid at a later period. Thus option B is incorrect.
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Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost. Hence option C is incorrect.
.
Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its sunk cost. Hence option D is incorrect.
.
Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.
