Your answer is from interest
Some problems that Hudson will face when they enter into the European market include:
- Competition from established industries.
- Higher cost of establishment.
- Lower profits or losses in first few years.
<h3>Why will Hudson face these problems?</h3>
Hudson would be going up against already established companies who have a loyal customer base and less costs as they do not need to pay for startup costs.
Hudson will also incur high investment costs in the areas of production and advertisement as they try to establish themselves in the European markets.
As a result of these high costs, Hudson will make losses or low profits as they might not be able to draw enough clientele to cover the cost of setting up in Europe.
In conclusion, Hudson faces several challenges.
Find out more about start up costs at brainly.com/question/13923720.
Answer:
Check the following consideration
Explanation:
Since the business owner follows cash basis of accounting the treatment is amount expensed during the financial year can be shown as expenses. hence in the current case rent for 18months can be shown as expenses for that financial year and it can be shown as a deduction while computing tax liability.
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