Answer:
B - The potential for the preferences and needs of niche members to shift over time toward mainstream provider product attributes.
Explanation:
In the long term, such focused goods and services might be provided by every supplier, hence the Company (focused on one product) might earn less profits and lose its competitive advantage as more players have entered the competition to produce and sell similar products.
Answer:
In the long-run, the economy tends to favor consumers more than it favors producers.
Explanation:
This is because, in competitive market structures, firms earn economic profit only in the short-run, but in the long-run, this economic profit either disappears, or decreases substantially, because the structure of the market itself provides incentive for a dynamic flux of firms in and out of the industry, and economic profit moves along that flux: it goes up when the number of firm in the industry goes down, and it goes down when the number of firms in the industry goes up.
Managers should understand these dynamics in order to be able to forecast trends and act accordingly, mainly by developing corporate strategy that tackle the forecasted scenarios.
Finally, an example of a business affected by a fall in demand is airline companies. The airline market is very competitive even if it is dominated by a few firms due to very high barriers to entry and exit. Airline companies are constantly pressured to offer lower prices, while costs do not necessarily fall at the same rate. The recent demand shock due to the current pandemic has left most airlines in a dire condition, using up past reserves to operate, and frequently in need of government assistance.
Answer: Option (B) is correct.
Explanation:
Net sales = Gross sales - Sale return
= $3,600,000 - 34,000
= $3,566,000
Gross profit = Net sales - COGS
= $3,566,000 - $1,200,000
= $2,366,000
Total Income = Gross profit - S& A expense - Prior period expense + Gain on sale of securities + Gain on disposal of business segment
= $2,366,000 - $500,000 - $59,000 + $8,000 + $4,000
= $1,819,000
Net Income for Year 2 = Total Income - [email protected]%
= $1,819,000 - $545,700
= $1,273,300
Answer:
a.
Explanation:
A bank reconciliation refers to the balancing the company's accounting records (the books) in regards to the cash accounts of that company, with the information from the bank statements that they have. Based on this information, it can be said that A bank reconciliation should be prepared to explain any difference between the depositor's balance per books with the balance per bank. Otherwise these inconsistencies may be considered as fraud.
Answer:
d. Assets - Liabilities = Stockholders' Equity.
Explanation:
The principle of double entry booking rests upon the accounting equation. the accounting equation states that (where correct and accurate accounting books are kept), the total asset of a corporation must equal the addition of the corporation's total liabilities and Stockholders' equity.
The following is the basic formula for accounting equation
Assets = Liabilities + Stockholders' equity
Rearranging the above basic equation, we have the alternative form of the accounting equation.
Assets = Liabilities + Stockholders' equity
Subtract Stockholders' equity from both sides of the equation
Assets - Stockholders' equity = Liabilities + Stockholders' equity -
Stockholders' equity
Assets - Liabilities = Stockholders' equity
