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NEW QUESTION: 1
Which of the following statements is NOT true regarding Company A? Exhibit:

A. The profitability of Company A increased in 2013.
B. The efficiency in collecting receivables of Company A increased in 2013.
C. The efficiency in using inventory of Company A increased in 2013.
D. The solvency of Company A increased in 2013.
Answer: C

NEW QUESTION: 2
A technological factor that may lead to overbuilding in an industry is:
A. The lack of a credible market leader.
B. Changes in industry structure.
C. The need to add capacity in large increments.
D. Inflated future expectations.
Answer: C
Explanation:
The need to add capacity in large increments is a technological factor that may lead to overbuilding. The following are other such factors:
(1)
the presence of economies of scale or a steep learning curve encourages preemption:
(2)
long lead times for adding capacity increase the risk of competitive inferiority if a firm does not act quickly to begin raising its capacity;
(3)
when the minimum efficient scale increases, large plants are becoming more efficient even though demand is not growing; and
(4)
changes in production technology result in new construction while old plants remain in
operation, particularly when exit barriers are high.

NEW QUESTION: 3
HOTSPOT


Answer:
Explanation: