Digital Technologies Are Increasing the Intensity of Competition in the Markets

question 27

Multiple Choice

Digital technologies are increasing the intensity of competition in the markets for electronic hardware because they are causing:

• A)Entry barriers to fall.
• B)Chinese companies that were once contract manufactures for Western and Japanese electronics producers are becoming direct competitors.
• C)Production costs to fall.
• D)The markets for once-separate products to converge.

---

Definitions:

Construction Period Interest

This is the interest accrued on funds borrowed to finance the construction of a property and is typically capitalized into the cost of the asset until it is ready for its intended use.

Management Manipulation

The unethical practice of altering financial data or reports to distort a company’s financial health or performance.

Asset Impairments

A reduction in the book value of an asset when its market value falls below its carrying amount on the balance sheet.

Fair Value

The estimated market price of an asset or liability based on current conditions and mutually informed buyer and seller transactions.