Which of the Following Statements Regarding Environmental Scanning Is the Most

question 6

Multiple Choice

Which of the following statements regarding environmental scanning is the most accurate?

• A) Environmental scanning changes the marketing environment.
• B) Environmental scanning identifies and interprets potential trends.
• C) Environmental scanning should be done about every five years.
• D) Environmental scanning focuses primarily on ecological factors.
• E) It is too costly and there is too much information generated from environmental scanning to make it viable for small firms.

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Definitions:

One-Line Method

A consolidation method where an investor reports its share of a subsidiary’s or associate’s single line item, such as net income, in its own financial statements.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but does not have full control.

Joint Ventures

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Accounting Methods

The specific rules and procedures used by a company to prepare its financial statements, including cost, accrual, and cash basis methods.