According to the Conceptual Framework Which of These Is Not

question 55

Multiple Choice

According to the Conceptual Framework which of these is not an essential characteristic of an asset?

• A) There must be future economic benefits.
• B) It must have a re-sale value.
• C) The entity must have control over the future economic benefits.
• D) The event giving rise to the entity's control over the resource must have occurred.

---

Definitions:

Product Differentiation

The practice of differentiating a product or service to appeal more to a specific target market.

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off, effectively maximizing overall social welfare.

Productive Efficiency

A situation where an economy or entity cannot produce more of one good without reducing the output of another good, indicating optimal resource allocation.

Monopoly Power

Monopoly power refers to the ability of a firm to control market prices and production, typically due to lack of competition in the marketplace.