What is the going-concern postulate of ARS 1, and how has it been criticized?
What will be an ideal response?
ANSWER:
The going-concern postulate states that unless there is evidence to the contrary, it is assumed that the firm will continue indefinitely. Under ordinary circumstances, reporting liquidation values for assets and equities is a violation of this postulate. This principle is too broad to lead to any kind of a choice among valuation systems, including historical cost. The postulate was also criticized because the time period of continuity is presumed to be long enough to conclude the firm’s present contractual arrangements. However, by the time these affairs are concluded, they will have been replaced by new arrangements. Hence, the implication is one of indefinite life. However, over the long run, many firms do conclude their activities. Therefore, continuity is more in the nature of a predication than an underlying assumption.
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According to the VALS system developed by SRI International, ________ are mature, satisfied comfortable people who value order, knowledge and responsibility
A) strivers B) innovators C) thinkers D) believers
The expectancy theory of motivation is employed to explain the motivation process in ______.
A. supportive leadership B. participative leadership C. achievement-oriented leadership D. path–goal theory
Match each term with the correct statement below.
a. marketing b. product c. exchange d. utility e. consumer markets f. industrial markets g. market segments h. target market 1. The ability of a product to satisfy a consumer need. 2. The ultimate purpose of marketing activities 3. Tangible goods, services, ideas 4. Individuals and organizations that purchase products in order to produce products to sell to others. 5. Groups of individuals with one or more similar product need
Answer the following statement(s) true (T) or false (F)
1. People today are more likely to interact with others to build their social capital due to more time spent at the workplace and the use of online networks. 2. Strong ties to family and friends can be restrictive to the entrepreneur because they are less likely to challenge our ideas. 3. Mentors come from outside an entrepreneur’s network. 4. A good way of disengaging from a networking conversation is to look the person in the eye, shake his or her hand, and say, “It has been great talking to you.” 5. Quid pro quo should be avoided in networking as it may be perceived as manipulative. 6. Facebook and LinkedIn make it easy to find out which face-to-face conferences the people in your network are attending.