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Which of the following would be an effective management strategy to improve the long-term profitability of a business? (A) Altering the credit terms to ensure early payment of receivables (B) Improving the efficiency of cost centres (C) Selling of non-productive assets (D) Factoring of accounts receivable - HSC - SSCE Business Studies - Question 10 - 2001 - Paper 1
Question 10
Which of the following would be an effective management strategy to improve the long-term profitability of a business? (A) Altering the credit terms to ensure early... show full transcript
Worked Solution & Example Answer:Which of the following would be an effective management strategy to improve the long-term profitability of a business? (A) Altering the credit terms to ensure early payment of receivables (B) Improving the efficiency of cost centres (C) Selling of non-productive assets (D) Factoring of accounts receivable - HSC - SSCE Business Studies - Question 10 - 2001 - Paper 1
Step 1
Improving the efficiency of cost centres
Answer
Improving the efficiency of cost centres is an effective management strategy as it focuses on optimizing operations, reducing waste, and increasing productivity. This can lead to a reduction in costs per unit, ultimately increasing profitability over the long term. By streamlining processes and ensuring that resources are utilized effectively, a business can enhance its profit margins.