A larger company can benefit from <em>economies of scale</em>, meaning they can get discounts by purchasing and producing in bulk which a smaller company wouldn't have the ability to do. A larger store also has the potential for higher revenue because they have more goods and services to sell.
Answer:
b.There is no effect on the accounting equation as one asset account increases while another asset account decreases.
Explanation:
On billing the customer, sales account would have been credited and accounts receivables debited.
On payment by the customer, accounts receivables would be credited and cash account debited.
Hence there will be no increase/decrease in asset as cash and receivables would nil off.
As such, the right option is b.There is no effect on the accounting equation as one asset account increases while another asset account decreases.
Answer:
It is important for a manager/decision maker to have a good understanding of both of these approaches, because it is more beneficial if the manager/decision maker can combine the two approaches to the situation.
Explanation:
Answer:
Option A:
Each buyer and seller is small, relative to the whole market; no single decision maker has any influence over the market price.
Explanation:
A competitive market is a market that is characterized by free entry and exit. This means that any party has a right to enter the industry, do business, and leave it freely. In other words, no party or business holds enough stake to become a gatekeeper in that industry.
Furthermore, prices are determined by the forces of demand and supply, and cannot be arbitrarily set by any business.
No single decision maker has any influence over the market price.
This makes option A correct.
