Which of the following would companies do in markets that require long payback periods?
A) divest operations
B) implement retrenchment strategies
C) emphasize on decruitment
D) reinvest profits

Question

Quizplus · Accepted Answer

In markets that require long payback periods, companies would reinvest their profits to ensure the longevity of the business. This would involve allocating a percentage of profits towards research and development or acquiring new assets that would generate more earnings in the future. Divesting operations, implementing retrenchment strategies or emphasizing on decruitment would not be effective solutions in such markets.

Which of the Following Would Companies Do in Markets That