A Firm with a Production Orientation Is Most Likely to Survive

question 119

Multiple Choice

A firm with a production orientation is most likely to survive if:

• A) there are many small competitors in the marketplace
• B) demand for the product it produces exceeds supply
• C) the needs of the marketplace are constantly shifting
• D) supply for the product it produces exceeds demand
• E) any of these conditions exist

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Definitions:

Separately Stated

Items on a tax return or financial statement that are listed individually to ensure proper treatment under tax laws or accounting rules.

Ordinary Income

Income earned from providing services or the sale of goods, as opposed to capital gains or investment income, taxed at standard rates.

Section 179 Expense

A tax deduction that allows businesses to deduct the full purchase price of qualifying equipment and/or software within a tax year.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or decline in value.