Low Capital Requirements, Cost Advantages That Are Not Related to Company

question 37

Multiple Choice

Low capital requirements, cost advantages that are not related to company size, and the lack of brand loyalty are considerations regarding the ________.

• A)threat of new entrants to the industry
• B)threat of substitute products
• C)bargaining power of buyers
• D)rivalry among companies competing in the industry

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Definitions:

AASB 11

is an accounting standard that deals with the financial reporting of interests in joint arrangements.

Joint Operations

A business activity in which two or more parties share control and are jointly responsible for management, assets, and liabilities associated with the activity.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a company's assets over their useful lives, reducing their book value.

Initial Investment

The amount of money used to start an investment, often the starting capital for a business or financial venture.