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The Opportunistic View Under PAT Predicts Managers to Prefer Capitalisation

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Essay

The opportunistic view under PAT predicts managers to prefer capitalisation over expensing.Discuss.


Definitions:

Bargaining Power of Suppliers

The ability of suppliers to influence the terms and conditions of the materials and goods they supply, affecting the buying company's costs and quality of inputs.

Degree of Rivalry

The intensity of competition among firms within the same industry or market.

Bargaining Power of Buyers

The ability of buyers to influence the price and terms of purchase due to their leverage over sellers.

Economic

Related to the production, consumption, and transfer of wealth within a community or society.

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