Differences in Tastes and Preferences

question 63

Multiple Choice

Differences in tastes and preferences

• A) increase pressures for cost reductions.
• B) reduce profit potential.
• C) increase pressures for local responsiveness.
• D) reduce pressures from the host government.
• E) prevent a company from pursuing a licensing strategy.

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Definitions:

Balance Sheet Accounts

Accounts that report the financial position of a company, including assets, liabilities, and shareholders' equity, at a specific point in time.

Closing Process

The transfer process of converting temporary account balances to zero by transferring the revenue and expense account balances to the owner’s capital account, and transferring the owner’s drawing account balance to the owner’s capital account.

Drawing Account

An account used to track withdrawals made by the owner of a sole proprietorship from the business for personal use.

Temporary Account

An account in financial accounting that is used to collect revenues, expenses, and withdrawal information which is transferred to permanent accounts at the end of an accounting period.