Which of These Is a Disadvantage of a Country Adopting

question 27

Multiple Choice

Which of these is a disadvantage of a country adopting international accounting standards compared to the country developing its own standards?

• A)Standards by their nature must be general and involve compromises.
• B)It will increase accounting and reporting costs for multinational companies.
• C)It will reduce the comparability of different countries' financial reports.
• D)All are disadvantages.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting consumers' sensitivity to price changes.

Monopolist

An entity or individual that has exclusive control over the supply of a good or service, enabling them to manipulate market prices.

Unregulated Monopolists

A single supplier in a market without government intervention or regulation, potentially leading to higher prices and lower outputs.