Physical Depreciation Occurs When Changes in Customer Needs Causes a Fixed

question 41

True/False

Physical depreciation occurs when changes in customer needs causes a fixed asset to no longer provide services for which it was intended.

---

Definitions:

External Environment

The outside forces and factors that affect an organization's performance and strategies, including economic, technological, sociocultural, and political/legal elements.

Scanning

The act of systematically exploring various environments and sources for information, often to identify trends, opportunities, and threats.

Competitive Intelligence

A formal approach to obtain information about competitors.

North American Free Trade Agreement (NAFTA)

A treaty entered into by the United States, Canada, and Mexico; it was designed to remove tariff barriers between the three countries.