List the Threats Posed by the Five Forces Identified by Michael

question 88

Essay

List the threats posed by the five forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment.

Comprehend the cost allocation and reporting of intangible assets in financial statements.

Grasp the implications of research and development costs on financial reporting.

Understand the concept of return on assets and how it is affected by changes in asset values.

Understand how to calculate and interpret the return on assets.

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Definitions:

Current Asset Section

Part of a company's balance sheet that lists assets likely to be converted into cash within one fiscal year or operating cycle.

Available-for-Sale Security

Financial assets such as stock or bonds that are not classified as held-to-maturity or trading securities and can be sold in the marketplace.

Fair Value

A reasonable estimate of the price for goods, services, or assets if sold in the market under current conditions.

Unrealized Loss Account

A financial account that tracks the losses on investments or assets not yet sold, representing a decrease in value.