Because Companies Are Likely to Be Most Familiar with Their

question 19

Multiple Choice

Because companies are likely to be most familiar with their own operations, ____________ opportunities are usually the easiest to pursue.

• A) market penetration
• B) product development
• C) market development
• D) diversification
• E) All of these are equally easy.

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Definitions:

Straight-Line Method

A method of depreciation where an asset's cost is evenly allocated over its useful life.

Discount on Bonds Payable

The gap between what a bond is actually worth and the price at which it is sold, in cases where it sells for less than its stated value.

Bonds Payable

This term refers to the amount of money a company owes to bondholders at the end of an accounting period, representing a long-term liability.

Present Value

The present valuation of money to be received in the future or recurrent cash inflows, accounting for a chosen rate of interest.