Technological Advances Can Replace or Substitute for Existing Products in a Relatively

question 42

Multiple Choice

Technological advances can replace or substitute for existing products in a relatively short period. Nest's doorbell is a likely replacement or substitute for

• A) digital assistants.
• B) digital video recorders.
• C) security cameras.
• D) exterior lighting.
• E) plastic credit cards.

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Definitions:

Profit Margin Ratio

A financial metric used to assess a company’s profitability by comparing net income to revenue.

Gross Profit Ratio

The proportion of money left over from revenues after accounting for the cost of goods sold.

FOB Shipping Point

A term that indicates the buyer is responsible for goods once they leave the seller's premises, including paying shipping costs and bearing the risk of loss in transit.

Record Revenue

The act of documenting the income earned by a company from its business activities during a specific period, following accounting principles.