Environmental Changes or Shifting Consumer Preferences Often Force a Firm

question 115

True/False

Environmental changes or shifting consumer preferences often force a firm to rethink its positioning strategy.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment.

Total Assets

The sum of all resources owned by a company, valued in monetary terms.

Deferral

A financial term referring to the postponement of the recognition of certain revenues or expenses to a later accounting period.