Which of the following is a reason a company would be willing to accept new business at a loss?
A)The new business will allow the company to reduce its fixed costs.
B)The new business will always cover variable costs.
C)The new business may result in certain customers influencing other potential customers.
D)The new business will increase fixed costs.

Question

Quizplus · Accepted Answer

Accepting new business at a loss may be worthwhile if it brings in influential customers who could attract other potential customers to the company.

Which of the Following Is a Reason a Company Would