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A scale factor can cause an enlargement or a reduction of the original object. When the scale factor is less than 1, it causes a reduction.
From the information given, the dimensions of the businesscard are
width = 2.5 cm
height = 10 cm
To reduce the logo by a scale factor of 0.4, we would multiply each dimension by 0.4. Thus,
New width = 0.4 x 2.5
New width = 1 cm
