External Threats May Pose Various Degrees of Adversity Upon the Company

question 94

Multiple Choice

External threats may pose various degrees of adversity upon the company and can surface from many sources and examples,EXCEPT for:

• A) the surfacing of cheaper or better technologies.
• B) the entry of lower-cost foreign competitors and restrictive foreign trade policies.
• C) new burdensome regulations.
• D) demographic shifts that can curtail product innovation.
• E) rising prices on key inputs (such as energy costs).

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Definitions:

Salvage Value

The conjectured remain value of an asset at the end of its productive life.

Straight-Line Method

A technique for determining depreciation or amortization by equally distributing an asset's cost throughout its lifespan.

Salvage Value

An asset’s expected trade-in value at the point it concludes productive life.

Depreciation

Spreading out the cost of a tangible asset systematically over its life of service.