ECONOMICS (CBSE/UGC NET)

ECONOMICS

ENTREPRENEURS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following is the best long-term strategy to reach profitability?

A	Find new vendors with lower prices
B	Cut store hours
C	Expand into different markets
D	Lay off employees

Explanation:

Detailed explanation-1: -Looking After Customers. The most important difference between short term profit and long term profitability is that short term profit focuses on making money quickly while long term profitability focuses on taking care of customers.

Detailed explanation-2: -There are 3 main ways to improve the profitability of your company: Sell more, price higher and reduce costs. But profits can also be increased by greater cost efficiency.

Detailed explanation-3: -Prepare a budget. Focus on your profit margins. Review your business’s bottom line performance. Benchmark your business’s performance. Assess the effectiveness of cost management measures. Evaluate business productivity. Develop new business strategies. Reduce your error rate. 20-Dec-2021

Detailed explanation-4: -Improving your marketing with existing product on the current market. Penetrating into new markets. Expanding product selection. Diversification. Expanding through acquisitions.

There is 1 question to complete.