If Barriers to Entry Exist in a Market,then

question 81

Multiple Choice

If barriers to entry exist in a market,then:

• A)the costs of entry and exit are relatively low.
• B)there will be few close substitutes of the product in the market.
• C)firms will be incurring losses in both the short and long runs.
• D)firms will tend to have relatively less monopoly power.
• E)the existing firms will quit the market in the long run due to mounting losses.

Grasp the basis of accounting methods: cash and accrual.

Relate the matching principle to the preparation of accurate financial statements.

Differentiate between various types of adjusting entries (e.g., prepayments, accruals, depreciation).

Identify the classifications and normal balance of specific accounts (Prepaid Insurance, Unearned Fees, Supplies Expense, Accumulated Depreciation).

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Definitions:

Restrictive Indorsement

A signature on a negotiable instrument, such as a check, that limits how the instrument can be used.

Depositary Banks

Banks that hold securities (such as shares or bonds) in custody for other parties, facilitating securities trades and dividend payments.

State of Qatar

A sovereign country located in Western Asia, occupying the small Qatar Peninsula on the northeastern coast of the Arabian Peninsula.

Negotiation

The process of discussing and arriving at a mutual agreement between parties.