Which of the Following Is an Example of Opinion Shopping

question 6

Multiple Choice

Which of the following is an example of opinion shopping by a company?

• A)Changing auditors due to the quality of work by the auditors
• B)Changing auditors due to wanting desired accounting treatment
• C)Changing auditors due to the size of the audit fees
• D)Changing auditors due to the size of the audit firm

---

Definitions:

Barriers To Entry

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for all possible adjustments, including changes in industry size.

Natural Monopoly

A market structure where a single firm can produce the entire market supply of a particular good or service at a lower cost than any potential competitor.

Network Effects

Network effects occur when the value of a product or service increases as more people use it, making it more attractive and beneficial to users.