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Which strategy will most likely help increase a company's profits?

A) Increasing the products it offers
B) Increasing costs
C) Increasing its target market
D) Increasing revenue

1 Answer

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Final answer:

Increasing revenue is the most likely strategy to increase a company's profits, although expanding the target market can also contribute to this goal when done alongside efforts to increase sales.

Step-by-step explanation:

The strategy that will most likely help increase a company's profits is D) Increasing revenue. Revenue is the total amount of money a company brings in through its operations before expenses are deducted. By finding ways to generate more sales, such as by introducing new products, expanding into new markets, or improving marketing efforts, a company can significantly boost its revenue. However, it's important to consider that merely increasing the number of products offered (A) doesn't guarantee higher revenues if those products don't meet customer needs or if the market isn't interested in them.

Increasing costs (B) is counterintuitive to profit maximization since it could lead to higher prices that push customers away unless those costs lead to higher quality or more in-demand products. Increasing its target market (C) is a viable strategy as well and often goes hand-in-hand with increasing revenue, but it may require additional investments in marketing and product development.

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