ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Will cut Government spending
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Will act as incentive for people to work, so reduce inequality
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Will decrease incomes for the poorest in society
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All the above
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Detailed explanation-1: -Why is reducing costs good for a business? Reducing costs increases the funds available within the company. This can translate directly to increased profits and therefore dividends to shareholders, or could free up working capital to fund expansion or growth of the company.
Detailed explanation-2: -Cost cutting can aid your future success Evaluating your spending and overall costs can make a big difference in your business. By cutting unnecessary expenses, you can allocate that money to where it’s truly needed. It’s smart to keep a close eye on costs in good times and bad.
Detailed explanation-3: -Cost reduction is a raw dollar-pinching approach with the key objective of cutting necessary and/or unnecessary expenses. For example: switching off the air-conditioner after working hours or using compatible toners for MFPs (Multi-Function Printers).
Detailed explanation-4: -Cost reduction is the process of decreasing a company’s expenses to maximize profits. It involves identifying and removing expenditures that do not provide added value to customers while also optimizing processes to improve efficiency. Cost reduction typically focuses on generating short-term savings.