Which of the Following Is Not an Advantage for New

question 57

Multiple Choice

Which of the following is not an advantage for new companies entering the marketplace?

• A)They can implement new systems and equipment.
• B)They are not locked into an existing brand image.
• C)They are more highly motivated.
• D)They can establish new relationships with suppliers.

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Definitions:

Permanent Accounts

Accounts that carry their ending balances over to the next fiscal year, including asset, liability, and equity accounts, foundational for understanding a company's financial health.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, listing assets, liabilities, and equity.

Final Entries

The journal entries recorded at the end of an accounting period to prepare accounts for the next period or for the preparation of financial statements.

Temporary Accounts

Accounts used to collect information during a specific accounting period and are closed at its end, such as revenues, expenses, and dividends accounts.