Touchstone Hardware Was a Popular Company That Specialized in Making

question 16

Multiple Choice

Touchstone Hardware was a popular company that specialized in making floppy disks. At the start of the 21st century, when people began switching to CDs and DVDs to store their information, it was brought to the notice of senior managers that the company needed to switch its focus to the new storage devices. However, managers did not feel it was important to switch. They dismissed CDs and DVDs as just a passing phase. At this point, which stage of organizational decline is the company in?

• A)Dissolution stage
• B)Crisis stage
• C)Proactive stage
• D)Faulty action stage
• E)Blinded stage

---

Definitions:

Time Value

The concept in finance that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Initial Value Method

The initial value method is an accounting approach used in investments where the investment is recorded and maintained at its acquisition cost, ignoring market fluctuations.

Acquisition Method

An accounting method used in business combinations, where the purchasing entity records the assets and liabilities of the acquired entity at fair value.

Internal Reporting

The process of preparing and presenting financial statements and other reports to management within an organization.