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Question 5
Which of the following is least likely to be a firm’s decision in the long run?
O A) Jane is trying to decide whether to open a second franchise of her business.
O B) Aaron hires two additional workers to help cover the holiday rush at his shop.
O C) Mike lists his delivery truck for sale in hope of raising money to buy a new one.
O D) Ellen applies for a loan to finance an expansion of her plumbing business.

Ask by Hall Gough. in the United States
Mar 30,2025

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Option B is least likely to be a firm’s long-run decision.

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Bonus Knowledge

In the long run, businesses are more focused on strategic and significant decisions that affect their growth and market position, such as opening a second franchise or obtaining loans for expansion. Therefore, Aaron hiring two additional workers to cover seasonal demand for just the holiday rush is indicative of a short-term operational decision rather than a long-term strategic move regarding the overall direction of the firm.
Additionally, it’s essential to recognize how long-term decisions also typically involve substantial investment and commitment of resources. These decisions shape the company’s future and are rooted in their broader objectives, contrasting with temporary staffing adjustments that are primarily driven by immediate needs.

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