SO Controlling” Reading Directions: Student activity ,questions and answers

1. Which of the following might result if a company had good sales but ignored expenses: a. increased profit c. Inventory loss b. Business failure d. Reduced overhead 2. Which of the following is a way that a business can use the money it saves by controlling expenses: a. Expansion c. Orientation b. Evaluation d. Consolidation 3. Which of the following is a reason why businesses try to control expenses to purchase the most modern equipment: a. To spend excess cash c. To satisfy suppliers b. To remain competitive d. To offer good benefits 4. Businesses that are unable to afford regular maintenance because of overspending run the risk of needing to a. hire new employees. C. make costly repairs. b. extend working hours. D. order more inventory. 5. Which of the following is an area in which expense control can help to create an appropriate image for a business: a. Culture c. Geography b. Diversity d. Appearance 6. Businesses often use the money saved by controlling expenses to increase sales through a. Management. C. promotion. b. price fixing. D. recruitment. 7.How does a business benefit when its expense-control efforts have enabled it to offer good wages and benefits? a. Qualified workers are retained. C. Insurance payments are decreased. b. Operating assets are controlled. d. Spending opportunities are increased. 8. Businesses that buy goods for resale can control their expenses by a. expanding their product lines. C. taking advantage of cash discounts. b. increasing their inventory levels. D. buying additional insurance coverage. 9. Businesses that control expenses can carry out research and development activities because they have more