Square Provides a Means for Small Businesses to Process Credit

question 15

Multiple Choice

Square provides a means for small businesses to process credit and debit card sales without signing up for a traditional credit card arrangement of monthly fees and minimum charges. It used which new entry strategy to enter the market initially?

• A)pioneering
• B)imitative
• C)adaptive
• D)differentiated

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Definitions:

Prepaid Insurance

An asset account that reflects the amount of insurance premiums that have been paid in advance and are gradually recognized as an expense over the coverage period of the policy.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Year 1

Refers to the first year of operation for a business or the first year of a specific reporting period.

Contra-asset

A contra-asset account is a type of asset account where its balance is a negative figure that offsets the balance of its corresponding asset account.