If an Advance in Computer Technology Reduces the Need for Businesses

question 8

Multiple Choice

If an advance in computer technology reduces the need for businesses to hire accountants, students majoring in accounting should expect

• A) a lower rate of return on their human capital investment.
• B) an increase in their employment prospects.
• C) a higher wage rate than they were expecting when they selected their major.
• D) an increase in the demand for accountants.

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Definitions:

Secured

Refers to a loan or obligation that is backed by collateral, reducing the risk associated with lending.

Unsecured

Refers to loans or debts that are not backed by collateral, presenting a higher risk to lenders.

Fresh Start

A bankruptcy procedure that allows a debtor to eliminate debts and start over financially, often involving reorganization plans for businesses or individuals.

Reorganization Value

The value of a company's assets during a reorganization, reflecting their fair market value rather than book value.