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The Competitive Forces Model Cannot Be Used to Analyze Modern

question 98

True/False

The competitive forces model cannot be used to analyze modern digital firms which face new competitive forces that are not true of traditional firms.


Definitions:

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and made available for use.

Commercial Substance

A concept in accounting that indicates a transaction significantly alters the economic position or cash flows of an entity.

Straight-Line Depreciation

A strategy for dividing the cost of a substantial asset through its operational life in even yearly portions.

Productivity

The measure of efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

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