Answer:
The both firms lose and the consumers gain
Explanation:
This scenario paints the picture of a Price war.
A price war is a competition strategy known by repeatedly cutting prices below those of competitors.
As a competitor lowers its price, then others will lower their prices to match.
Eventually, price wars are beneficial to the buyers who are consumers, who can take advantage of lower prices.
Price cutting is not good for any of the competing companies involved because the lower prices reduce profit margins and can threaten their survival.
If this practice of price reduction continues the monopoly profits are erased, and the smaller, more marginal or less efficient firms cannot compete and must close.
Answer:
a. False.
b. True.
c. False.
d. False.
e. True.
Explanation:
a. Assets other than cash are expected to produce cash in future at some point but it is not necessary that every asset produces exactly the same amount at which it is carried in the financial statements. For example there is account receivable balance of $100,000, but it is not mandatory that all receivable will be converted into cash overtime as there can be bad debts expense also which will result in reducing accounts receivable balance.
b. Annual reports are often used by existing and potential investors for decision making purpose whether it is beneficial to invest in a certain company based on its financial statements analysis, to identify the risks that the company is exposed, the ability of a company to generate cash flows, potential future earning capability of a company and going concern status.
c. The annual report is not solely used by its creditors/lenders, it is prepared for a wide range of users. For example: shareholders, directors, investors, etc.
d. Cash budget is not a financial statement and it is not mandatory in the annual report, four most important financial statements which are required in the annual reports are balance sheet, income statement, cash flow statements, and statement of stockholders' equity.
e. After the Enron scandal annual reports cannot contain managements verbal reasoning’s, they needs quantitative and reasoning’s based on facts and figures which can be verified and audited to avoid misleading information provided in the annual reports and reduce chances of window dressing in the financial statements.
When dance students repeat a dance step after watching their instructor demonstrate it, they are engaging in the process of behavioral modeling.
<h3>
What is behavioral modeling?</h3>
The goal of behavioral modeling is to identify the factors that influence a person's choices, and the model is then applied to forecast future behavior. To target customers with offers and advertising, businesses employ behavioral modeling. Further risk profiles of consumer groups are created by banks using behavioral modeling.
As part of the Social Learning Theory, behavior modeling entails teaching staff members how to do a task by demonstrating the expected modeled behavior. This method is based on the idea that people inherently pick up information from hands-on experience.
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