He External Environment (Scenario)

question 74

Multiple Choice

he External Environment (Scenario)
DigiTech Corporation is a manufacturer of handheld language translation devices. There are many forces in the external environment that influence DigiTech, and its managers are monitoring them closely. One factor is the upcoming federal election. If elected, the leading political candidate has promised to cut corporate taxes to help stimulate the economy. Another factor is the emergence of new competitors with products similar to DigiTech's best-selling model: the Speak-Easy. Advances in the processing speed of computer chips have shortened product development cycles and made it easier for new companies to enter the market. Unfortunately, the recent increase in competition has led to supplier shortages of key components such as microphones and micro-speakers and has left DigiTech scrambling to find new sources!
-The upcoming federal election and the potential change of government involve which factor in DigiTech's external environment?

• A)economic conditions
• B)political/legal conditions
• C)socio-cultural conditions
• D)demographic conditions
• E)global conditions

Comprehend the treatment and reporting of trading securities on financial statements.

Comprehend the treatment and reporting of available-for-sale securities on financial statements.

Learn to calculate and understand the impact of investment transactions on the balance of Retained Earnings.

Understand the differences between trading securities, available-for-sale securities, and held-to-maturity securities.

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Definitions:

Geometric Mean

A type of mean or average which indicates the central tendency of a set of numbers by using the product of their values.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.

Geometric Mean

A type of mean or average, which indicates the central tendency of a set of numbers by using the product of their values and is particularly useful for proportional growth rates.

Rates Of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.