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Refer to the Scenario Below to Answer the Questions That

question 44

Multiple Choice

Refer to the Scenario below to answer the questions that follow.
New Ideas (Scenario)
Though New Ideas Inc.has been in business for 30 years,the company and its employees have seemingly been in a constant state of change.Paul Gill has been president of New Ideas for the last 15 years.During this time,he has had to change the strategic focus of the company three times.The employees have become vocal recently about the decrease in their bonus cheques and are demanding increased profits.It seems as though his competition is always introducing new products into the market,and the niches Gill thought New Ideas held leadership in are continuously changing.Recently the government has passed new legislation to increase the control of the product packaging and product contents.The technology used to manufacture the products is constantly improving to make the process more efficient.
-The change in strategic focus of the company is a(n) ________ force for change.

Definitions:

Unrecognized Net Gain Or Loss

Refers to gains or losses that have been incurred but are not reported in the financial statements because they are unrealized.

Vested Benefits

Employee benefits, such as pension plans or stock options, that one has earned the right to receive and cannot be forfeited.

Accrual Concept

An accounting methodology that records revenues and expenses when they are incurred, regardless of cash flow.

Intangible Asset

An asset that lacks physical substance and represents potential future benefits; examples include patents, trademarks, and goodwill.