The initial decision of what products and services to produce has a much ________ on the profitability of the firm when compared to the ________.
A)smaller impact; financing decision
B)larger impact; dividend decision
C)larger impact; investment decision
D)larger impact; financing decision

Question

Quizplus · Accepted Answer

The initial decision of what products and services to produce significantly influences a firm's profitability, often more so than the financing decision. This is because the core business activities directly affect revenue and market positioning, while financing decisions, though important, typically concern how to fund those core activities.

The Initial Decision of What Products and Services to Produce