Which of the Following Is a Factor That Has Been

question 49

Multiple Choice

Which of the following is a factor that has been associated with the decline in union membership?

• A) high regulation in such areas as workplace safety and equal employment opportunity
• B) low competition between companies for scarce human resources
• C) high job growth in the manufacturing sector of the economy
• D) low costs of unionized labor
• E) low prospects for growth in the service industry

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Definitions:

Fair Value

The price at which an asset would be bought or sold in an orderly transaction between market participants at the measurement date.

Historical Cost Principle

An accounting principle that states assets should be recorded and reported at their original purchase price, not their current market value.

Economic Entity Assumption

The economic entity assumption is an accounting principle that treats a company as a separate entity from its owners for reporting purposes.

Comparability

A qualitative characteristic of financial information that allows stakeholders to identify similarities and differences between two or more sets of economic facts.