What Is the Similarity Between High-Technology Firms and Service-Based Firms

question 147

Multiple Choice

What is the similarity between high-technology firms and service-based firms that makes them risky as restructuring candidates?

• A)They are human-resource dependent.
• B)They have few tangible assets.
• C)Both types of firm rely on financial economies.
• D)The demand for their products is highly sensitive to economic downturns.

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Definitions:

National Saving

The total saving of a country, composed of the savings accumulated by both the private sector and the government, available for investment.

Aggregate Demand

A complete tally of the demand for goods and services in an economy, at an agreed upon price level during a precise time period.

National Defense

Government activities and infrastructure aimed at protecting a country from threats and maintaining its security.

Federal Outlays

Refers to the total amount of money the federal government spends in a fiscal year, including spending on services, subsidies, and interest on debt.