Which of the Following Statements Regarding the Level of Demand

question 22

Multiple Choice

Which of the following statements regarding the level of demand for the goods sold or services provided by companies is correct?

• A) If a client's products or services are seasonal, this will affect revenue flow.
• B) If a client operates in an industry subject to changing trends, the client does not risk inventory obsolescence.
• C) If a client's products or services are seasonal, this will not affect revenue flow.
• D) When a product or process is subject to technological change, there is never a risk that the client will be left behind by its competitors.

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Definitions:

Salvage Value

The predicted remaining value of an asset at the termination of its functional life.

Working Capital

The amount by which current assets exceed current liabilities, indicating the liquidity level available to a business for day-to-day operations.

Salvage Value

The calculated resale value an asset holds once it ceases to be useful.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life.