D&B Designs Has Been in the Landscape Design Business in Pleasantville

question 146

Multiple Choice

D&B Designs has been in the landscape design business in Pleasantville for the past 20 years.As the "first mover" in the market,the company has built a strong market share over the years and is the best-known firm in the area.The company size increased steadily,and now stands at 50 employees.Which of the following,if TRUE,would make the company's business environment more uncertain?

• A)Homeowners in the area take pride in their gardens and are avid do-it-yourself gardeners.
• B)Demand for landscaping services dips every autumn and winter.
• C)A long-time competitor quit the landscape design business last year.
• D)Zoning laws in the area change as each new city council comes into power.

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Definitions:

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary source of information for the financial statements.

Receiving Report

A document usually prepared by the receiving department detailing the goods received by a business, which is then used to verify invoices before payment.

Period Costs

Expenses that are not directly tied to the production of goods or services and are expensed within the period they occur.

Production Process

The sequence of operations or activities involved in converting materials into finished goods or services.