Which of the Following Statements Is True Regarding Location Economies

question 9

Multiple Choice

Which of the following statements is true regarding location economies?

• A)The demand and supply factors heavily influence the productivity of a location.
• B)They apply only to service providers.
• C)Each production activity generates more value in a particular location than elsewhere.
• D)They are restricted to business activities that involve product manufacturing.

Discuss the challenges in planning for new versus existing businesses.

Appreciate the impact of technology on the financial planning process.

Understand the process and applications of rounding numerical answers.

Apply calculator use for approximation and simplification of expressions.

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Definitions:

Revenue Recognition Principle

An accounting principle stating that revenue should be recorded when it is earned and realizable, regardless of when the cash is received.

Expense Recognition Principle

An accounting principle that states expenses should be recognized and recorded when they are incurred, regardless of the timing of cash payments.

Financial Statements

Papers that give a summary of a corporation's financial status, featuring the balance sheet, income statement, and statement of cash flows.

Fiscal Year

A 12-month period used for accounting purposes that may not coincide with the calendar year.