Purple Lotus and GreenBolt Are Two Leading E-Commerce Companies

question 111

Multiple Choice

Purple Lotus and GreenBolt are two leading e-commerce companies.Recently,Purple Lotus engaged in an online price war with GreenBolt in order to gain greater market share.This is an example of _____ on the part of Purple Lotus.

• A) cooptation
• B) voluntary action
• C) competitive pacification
• D) competitive aggression
• E) environmental scanning

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Definitions:

Direct Write-Off Method

An accounting method where uncollectible receivables are directly written off against income at the time they are deemed unrecoverable.

Allowance Method

An accounting technique used to anticipate and adjust for potential uncollectible accounts receivable.

Uncollectible

Accounts receivable that are considered unlikely to be recovered and may be written off as a bad debt expense.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.