Answer:
D)
Explanation:
Based on the information provided within the question it can be said that this is associated with the company capability of being able to collect fuller and richer information about markets, customers, prospects, and competitors. This is because with by knowing what customers are purchasing and how often they are getting lots of information regarding what products are good in the market, customer information including frequency of purchases, what customers are likely to buy, and even the effect that the competitors are having on the market.
Answer:
A. standard deviation = $500, expected return = $5,000
Explanation:
For analysis which investment involved the least amount of risk we need to determine the coefficient of variation i.e. shown below:
As we know that
Coefficient of variance = standard deviation ÷ expected return
A = $500 ÷ $5,000 = 0.10
B = $700 ÷ $500 = 1.40
C = $900 ÷ $800 = 1.125
D = $400 ÷ 350 = 1.143
As it can be seen that investment A has the leas amount of risk hence, the same is to be considered
Answer:
The correct answer is letter "E": A price war.
Explanation:
A price war is a situation in which competitors undercut prices to offer their products at a lower level than their rivals so they can attract more consumers. Manufacturers find ways to cut their costs so they can stay profitable under these circumstances. If they are unable to do that, the company will end up with losses.
Answer:
c. Dorothy should consider the threats to her independence and whether safeguards may be applied that reduce the threat(s) to an acceptable level.
Explanation:
The best application of the AICPA conceptual framework approach in this scenario is that: Dorothy should consider the threats to her independence and whether safeguards may be applied that reduce the threat(s) to an acceptable level.
<u>The threat of independence in the scenario is not high enough to warrant the resignation of Dorothy from the audit team because her friend is not the Finance Director or person in charge of primary preparation of the financial statements but just a member in the internal audit team, hence the risk to her independence is relatively moderate.</u>
Dorothy already believes that she will be objective, hence she should consider the threats to her independence and whether safeguards may be applied that reduce the threat(s) to an acceptable level.
