What Is the Similarity Between High-Technology Firms and Service-Based Firms

question 112

Multiple Choice

What is the similarity between high-technology firms and service-based firms that makes them risky as restructuring candidates?

• A) They are dependent on human resources.
• B) They have few tangible assets.
• C) Both types of firm rely on financial economies.
• D) The demand for their products is highly sensitive to economic downturns.

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Definitions:

Posting

The act of recording financial transactions in the ledger of a company as part of the accounting process.

Journal

A book or digital record where financial transactions are initially recorded in chronological order.

Ledger Accounts

Records that summarize all the transactions related to a particular aspect of a business's finances, such as assets, liabilities, equity, revenue, and expenses.

Unearned Revenues

Income received by a company for goods or services yet to be delivered or performed, considered a liability until earned.