With Regard to a Firm's Resources (When Searching for Attractive

question 111

Multiple Choice

With regard to a firm's resources (when searching for attractive opportunities) :

• A) a manufacturer needs skilled production people more than skilled salespeople.
• B) lack of financial strength is often a barrier to entry.
• C) large companies always have an advantage over smaller companies.
• D) a familiar brand name is not very important since there are many new brand names.
• E) a patent owner has a 3-year monopoly to develop its product.

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Definitions:

Employee Salaries

Employee salaries refer to the fixed compensation paid to employees for their services over a specified period, regardless of the number of hours worked or the quantity of output.

Travel Expenses

Costs incurred for business-related travel, including transportation, accommodation, and meals.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing better performance evaluation.

Other Expenses

Costs not directly related to the core operations of a business, such as interest payments or losses from selling assets.