Costco has higher weekly sales revenues than its direct competitor Sam's Club. When a corporation's revenues are higher than its expenses, there will be a profit in the form of net income. If a Costco store manager reduced store hours and personnel because they felt that the store was too busy, which of the following parties would see the most benefit?

Question

Quizplus · Accepted Answer

Reducing store hours would limit access to customers and cause the store to be even busier while open. Reducing personnel would cause a cutback on employee hours and availability to assist customers. The store's sales would likely decline, which would mean less revenue for suppliers. Only the store's competitor could be expected to benefit from this decision.

Costco Has Higher Weekly Sales Revenues Than Its Direct Competitor