Question

Which factors directly affect the company’s profit? Check all that apply.

a stocking up on soccer cleats and uniforms
a rise in the number of soccer leagues
a decrease in the cost of raw materials
the opening of two sporting goods stores
the push for physical activities in schools

Answer 1

Select:
- a rise in the number of soccer leagues — Yes (increases demand/sales, affects profit)
- a decrease in the cost of raw materials — Yes (lowers costs, increases profit)
- the push for physical activities in schools — Yes (increases demand/sales, affects profit)

Do not select:
- stocking up on soccer cleats and uniforms — No (buying inventory changes assets/cash but doesn’t directly change profit until items are sold)
- the opening of two sporting goods stores — No (may affect competition and demand indirectly, but not a direct internal change to profit)