Explain pressure exerted on an organization due to introduction of substitute products
What will be an ideal response?
Industry profits can decrease if new products or services delivering the same function are introduced to the
industry, especially if they cost less than existing offerings. Incumbent companies can reduce the pressure by
showing how their product or service is superior to those of substitutes.
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Under ASC 842 for lease accounting, which statement below is not accurate with respect to financial reporting?
A. Finance leases show separate amounts for amortization and interest expense. B. Lease expense is shown in the financing section of the statement of cash flows. C. Lease expense is shown in the operating section of the statement of cash flows. D. Operating leases show total lease expenses as a single line item.
Evaluate the pros and cons of the partnership as a form of business ownership
What will be an ideal response?