Using the Five Forces Model, Which Will Likely Result in a Higher

question 3

Multiple Choice

Using the five forces model, which will likely result in a higher level of CSR?

• A)A highly concentrated industry.
• B)Substitutes that are superior to existing products and costs are reasonable.
• C) Socially and environmentally conscious suppliers with standardized products that have multiple substitutes.
• D) No monitoring program for all supplier factories.

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Definitions:

Decreasing Expense

Expenses that diminish over time, typically due to cost-cutting measures, operational efficiencies, or depreciation methods.

Expense Recognition Principle

An accounting principle that dictates expenses should be recognized in the same period as the revenues they helped to generate, ensuring financial statements accurately reflect business activities.

Asset Valuation Principle

A principle in finance that entails estimating the current worth of an entity's assets, considering market value, use value, and other factors.

Historical Cost Principle

A fundamental accounting rule stating that assets must be logged and presented at the cost they were originally bought for.