Question

Which choices will help you cut back on expenses so that you can spend more money on promotions or advertising? Check all that apply.

Move to a higher-rent building.
Use less-expensive ingredients.
Look for discounted or used machines.
Hire a young employee at minimum wage.
Hire a manager to help the business grow.

Answer 1

Answers to check:
- Use less-expensive ingredients.
- Look for discounted or used machines.
- Hire a young employee at minimum wage.

Why:
- Using cheaper ingredients and buying used/discounted equipment directly lowers operating costs.
- Hiring someone at the minimum wage reduces payroll expense compared with higher-paid staff.

Do not check:
- Move to a higher-rent building — this increases expenses.
- Hire a manager to help the business grow — managers typically raise payroll costs (though they can increase revenue; not a short‑term expense cut).

Caveats: cutting costs can affect product quality, customer experience, legal/ethical standing (e.g., hiring practices, wage laws), and long-term growth. Consider alternatives like negotiating supplier prices, reducing waste, shifting to part‑time help, or moving to a lower-rent location.