Actions Firms Take to Gain Competitive Advantages by Operating in Multiple

question 86

Multiple Choice

Actions firms take to gain competitive advantages by operating in multiple markets or industries simultaneously are known as

• A) corporate level strategies.
• B) diversification strategies.
• C) business level strategies.
• D) strategic alliance strategies.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Allowance for Doubtful Accounts

A contra-asset account that represents the amount of accounts receivable a company does not expect to collect.

Accounts Receivable

The money owed to a business by its customers for goods or services that have been delivered or sold but not yet paid for.

Allowance Method

An accounting technique used to account for bad debts, estimating uncollectible accounts as an expense to the income statement and reducing accounts receivable on the balance sheet.