Potential competitors may enter an industry and begin to take market share from existing companies. What would be one of the largest challenges a new entrant would need to overcome to be successful when entering an industry?
a. Very few customers are currently buying a product
b. Several powerful retailers provide the only access to customers
c. Production costs are high and require high volumes to achieve profitability
d. Lack of products that go along with the product
c. Production costs are high and require high volumes to achieve profitability
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A triglyceride is a polymer made up of which kind of subunits?
A. nucleotides B. alternating sugar and phosphate groups C. amino acids D. glucose or modified glucose molecules E. fatty acids and glycerol
The auditor will send a standard bank confirmation to which of the following?
a. Financial institutions of customers using the lockbox. b. Financial institutions for which the client has a balance greater than $0 at the end of the year. c. Financial institutions with which the client has transacted during the year. d. Financial institutions used by significant shareholders.
Which of the following is true of the acid-test ratio?
a) It measures a company's ability to meet its short-term obligations with cash and cash equivalents b) It indicates how much cash could be realized by selling the inventory c) It measures a company's ability to pay its current liabilities d) It measures the ability of the company to earn net income
On January 1, 2011, James Company sold a machine for $10,000 that it had used for several years. The machine was purchased at $22,000, and had accumulated depreciation of $9,000 at the time of sale. What gain or loss will be reported on the income statement for the sale of the machine?
A) Gain of $10,000 B) Loss of $13,000 C) Loss of $3,000 D) Gain of $3,000