A Small-Scale Consulting Firm in Hawaii Is Struggling Financially Because

question 3

Multiple Choice

A small-scale consulting firm in Hawaii is struggling financially because it is unable to generate enough capital to run the business. The company then decides to get creative and uses web technology and digital resources to build long-term bonds with its current customers and also to reach new customers. This company is using concepts that primarily originated in the:

• A)entrepreneurship era.
• B)relationship era.
• C)production era.
• D)industrial era.

---

Definitions:

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends, used for reinvestment in the business or to pay off debt.

Prior Period Adjustments

Adjustments made to the financial statements to correct errors or omissions in previously issued financial statements.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing the amount of outstanding stock on the open market.

Income Statement

A financial report summarizing the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year.