The Continuity Assumption Is Inappropriate When

question 63

Multiple Choice

The continuity assumption is inappropriate when

• A) the business is just starting up.
• B) liquidation appears likely.
• C) fair values are higher than costs.
• D) the business is organized as a proprietorship.

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Definitions:

Process Innovation

The act of implementing new or significantly improved production or delivery methods.

Open Innovation

A business model that encourages sharing ideas and innovations with others outside the organization to accelerate development and leverage external expertise.

Extrinsic Motivation

Motivation that stems from the work environment external to the task; it is usually applied by others.

Innovation

The process of creating, developing, and implementing new ideas, products, or methods to improve or replace existing ones.