Which of the Following Is NOT Generally Considered a Component

question 61

Multiple Choice

Which of the following is NOT generally considered a component of a firm's competitive environment?

• A) rival firms
• B) new entrants
• C) labour laws
• D) suppliers

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Definitions:

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly across its lifespan in yearly increments.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to account for declines in value.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, reducing its book value on the balance sheet.

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.