Final answer:
The company president must decide between opening a new factory or upgrading equipment and between paying out profits to shareholders or reinvesting for future profit. Option B and C represent the true trade-offs, while Option A is just a factual statement.
Step-by-step explanation:
When a company president is deciding whether to open a new factory, they are faced with multiple trade-offs. These trade-offs include the choice between opening a new factory or upgrading existing equipment, as well as the decision to pay out more profits to shareholders or reinvesting in the business for additional profit next year.
Option B presents a direct trade-off related to capital expenditure: the firm can choose to open a new factory or to upgrade existing equipment. This is an example of an either-or decision regarding allocation of resources, where choosing one option will preclude the other.
Option C relates to a financial strategy trade-off where the company must decide whether to pay out more of its profit to shareholders or retain the profits to earn additional profit next year by increasing production. This decision impacts both current shareholder satisfaction and potential future growth opportunities.
Option A, which states that the 'firm currently employs 100 workers,' is not a trade-off but rather a factual statement about the company's current employment level and does not involve a choice.