Which of the Following Would Be Considered Part of the General

question 14

Multiple Choice

Which of the following would be considered part of the general environment of a firm?

• A) decreased entry barriers
• B) higher unemployment rates
• C) increased bargaining power of the firm's suppliers
• D) increased competitive intensity

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Definitions:

Straight-Line Depreciation

A system for spreading out the cost of a tangible asset in equal yearly amounts across its functional life.

Average Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

Annual Income

The total earnings or revenue generated by an individual or business in one fiscal year before any deductions.

Capital Projects

Large, long-term investments undertaken to create, expand, or replace a company's physical assets.