The Three Factors That Determine the Likelihood of a Firm

question 22

True/False

The three factors that determine the likelihood of a firm responding to a competitive move are awareness, motivation, and capability.

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of the shareholders.

Balance Sheet

A financial statement that presents the assets, liabilities, and equity of a company at a specific point in time, giving a snapshot of its financial condition.

Liabilities

Financial obligations or debts that a company owes to others, such as loans, accounts payable, and mortgages.

Purchasing Policy

The price and timing of raw materials and other goods and services necessary to build, sell, and support products.