Discuss why timing of strategic moves is important.
What will be an ideal response?
When to make a strategic move is often as crucial as what move to make. Timing is especially important when first-mover advantages or disadvantages exist. Under certain conditions, being first to initiate a strategic move can have a high payoff in the form of a competitive advantage that later movers can't dislodge. If the market responds well to its initial move, the pioneer will benefit from a monopoly position (by virtue of being first to market) that enables it to recover its investment costs and make an attractive profit. If the firm's pioneering move gives it a competitive advantage that can be sustained even after other firms enter the market space, its first-mover advantage will be greater still.
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Testing for goodwill impairment:
A. may result in an impairment charge defined as the difference between the goodwill reflected for the reporting unit in the consolidated balance sheet and the reporting unit's implied goodwill. B. requires computing implied goodwill, which is the amount of fair value of the reporting unit less the book value of the separately identifiable net assets of the reporting unit. C. requires both qualitative and quantitative tests. D. necessitates determining if the reporting unit itself is impaired after calculating implied goodwill.
The Wilshire 5000 stock index is
A. an index of the 2000 largest industrial companies whose shares trade in U.S. markets. B. an index of all the companies with U.S. headquarters whose shares trade in the U.S. C. an index of 5000 major companies whose shares trade in U.S. markets. D. an index of the average stock prices of many small firms operating in the U.S.
A customer touch point is when the customer makes a purchase
Indicate whether the statement is true or false
Which of the following methods does NOT require an adjusting entry to recognize bad debts?
A) percent-of receivables B) aging-of-receivables C) percent-of-sales D) direct write-off