Being a First Mover in a Market Is Advantageous for a Firm

question 47

Multiple Choice

Being a first mover in a market is advantageous for a firm because:

• A) it may have an opportunity to free ride on late-mover investments.
• B) it may gain advantage through proprietary technology.
• C) it would attract more firms to join their business network.
• D) it would face minimal technological and market uncertainties.

Understand the flow of goods, services, and money within the economic system as illustrated by the circular flow diagram.

Recognize the impact of market system structures on production, innovation, and risk distribution.

Understand the characteristics and importance of work engagement.

Recognize the role of corporate social responsibility in organizations.

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Definitions:

Fiscal Year

A fiscal year is a 12-month period that an organization uses for accounting purposes and preparing financial statements.

Ledger Entries

Records of financial transactions within a company’s general ledger, detailing accounts affected and the amounts for each transaction.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the books for the next period.

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries are made, used for preparing financial statements.