An Imitative Business That Competes Locally with Others in the Same

question 87

Multiple Choice

An imitative business that competes locally with others in the same industry is referred to as _____.

• A) incremental competition
• B) niche business
• C) linear competition
• D) parallel competition

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Definitions:

Loss

The result when a company's expenses exceed its revenues during a specific period of time.

Expense

An outflow of money or other resources, incurred to generate revenue, which is recognized in the income statement.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables reported on the balance sheet to reflect the amount that is expected to be uncollectible.

Uncollectible Accounts

Accounts receivable that a company does not expect to collect due to customers' inability to pay.