When the Firm Interacts with Other Organizations from Their Environment

question 22

Essay

When the firm interacts with other organizations from their environment, such as suppliers, these interactions are said to form a(n)_________system.

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Definitions:

Equity Method

An accounting technique used to record investments in associated companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's profits or losses.

Book Value

The value of an asset as recorded on the balance sheet, calculated by deducting the accumulated depreciation or amortization from the asset's original cost.

Equity Method

An accounting technique used to record investments in associate companies, reflecting the investor's share of the earnings.