Which of the Following Statements About the Competitive Environment Is

question 121

Multiple Choice

Which of the following statements about the competitive environment is most accurate?

• A) Firms that produce a quality product will always succeed in the competitive marketplace.
• B) Traditional firms will be unable to successfully compete against the new online firms unless they immediately create a way to reach customers through the Internet.
• C) Firms that empower their employees will continue to perform poorly in the competitive environment.
• D) Companies now have to offer both high-quality products and outstanding service at competitive prices.

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Definitions:

Residual Value

The projected worth of an asset at the conclusion of its service life, considering the deductions for depreciation.

Useful Life

The estimated period a fixed asset is expected to be useful for its intended purpose, affecting depreciation calculations.

Double Declining Balance

An accelerated method of depreciation which doubles the rate at which an asset is depreciated compared to the straight-line method.

Straight Line

A method for calculating depreciation or amortization by equally spreading the cost over the useful life of the asset.