A Small Consulting Company in Waikiki, Hawaii, Struggles Financially Because

question 35

Multiple Choice

A small consulting company in Waikiki, Hawaii, struggles financially because of limited access to economic resources. This company has to get creative to build long-term bonds with its current customers and use technology to reach new customers. The company is using concepts from what era?

• A) relationship era
• B) marketing era
• C) production era
• D) entrepreneur era

---

Definitions:

Equity Method of Accounting

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the investor’s share of the investee’s income, losses, and dividends received.

Capital Account Balances

The amounts recorded in the capital account of a company or individual, reflecting initial investment plus retained earnings minus any withdrawals.

Liquidating

The process of converting assets into cash or cash equivalents by selling them.