Many Aspects of an Industry Determine How Much Success a New

question 7

Multiple Choice

Many aspects of an industry determine how much success a new venture will have. Which of the following traits would make an industry unattractive for an entrepreneur to enter?

• A) An industry that is experiencing rapid growth.
• B) An industry in which most innovations come from small companies.
• C) An industry that is advertising intensive.
• D) An industry that is early it its life cycle.
• E) All of the above are favorable characteristics.

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Definitions:

Liabilities

Financial obligations or debts owed by a company to creditors or suppliers, which must be settled over time.

Posting

the process of transferring journal entries to respective accounts in the ledger.

Ledger

A book or electronic record used to record all of a company's financial transactions in chronological order.

T-account

A graphical representation used in accounting to illustrate the effects of transactions on account balances, with debits on the left and credits on the right.