IMANET CMA Exam - Topic 1 Question 76 Discussion

Actual exam question for IMANET's CMA exam

Question #: 76
Topic #: 1

[All CMA Questions]

Which of the following is a factor in the choice of strategy in a declining industry?

ALikelihood of an industry produce profits.

BThe nature of entrants to an industry.

CExternalities in industry development.

DMobility burners,

Show Suggested Answer

Suggested Answer: A

Since the salvage company's offer is for more than the book value of the equipment, an accrual- basis gain would result A loss on disposal of old equipment results in a tax benefit, since the loss reduces accrual basis income. Therefore, a gain. which increases accrual-basis income, results in a tax detriment, and the reduction to the net initial investment will be less than if the salvage company's offer had resulted in a loss.

by Stephaine at Oct 17, 2023, 09:39 PM

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Micaela

3 months ago

Externalities? Not sure how much they matter in decline.

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Queenie

3 months ago

The nature of entrants can definitely impact strategy.

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Talia

3 months ago

Wait, are mobility burners really a factor? Sounds odd.

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Junita

4 months ago

Totally agree, profits are key to strategy choices!

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Marica

4 months ago

A declining industry often struggles to produce profits.

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Marsha

4 months ago

Mobility barriers were mentioned in a practice question, but I’m uncertain how they relate specifically to declining industries.

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Bettye

4 months ago

Externalities in industry development sounds familiar, but I can't quite recall how it fits into the overall strategy choices.

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Donte

4 months ago

I remember discussing the nature of entrants in class, and it seems like that could really impact strategy in a declining industry.

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Frank

5 months ago

I think the likelihood of an industry producing profits is definitely a factor, but I'm not sure if it's the most important one.

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Dorethea

5 months ago

Ah, I remember this from our class discussion. In a declining industry, the strategy you choose would depend a lot on the type of new players entering the market and how that affects the competitive landscape. I'm pretty confident B is the right answer here.

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Geraldine

5 months ago

Hmm, I'm a bit unsure about this one. I'm trying to think through the factors that would influence strategy in a declining industry. Is it something to do with the likelihood of profits or external factors? I'll have to think this through more carefully.

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Bobbye

5 months ago

I'm pretty confident that the answer is B, the nature of entrants to an industry. In a declining industry, the type of new competitors entering the market would be a key factor in choosing the right strategy.

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Laila

5 months ago

I think the key here is understanding how the dynamics of a declining industry would impact strategy. The nature of new competitors entering the market seems like it could be an important consideration, but I'm not totally sure. I'll have to review my notes on this topic.

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Phillip

5 months ago

Hmm, this looks like a tricky one. I'll need to think through the different options carefully.

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Alecia

5 months ago

Hmm, I'm a little unsure about this one. The question mentions a Windows-based network, so I'm not sure if stand-alone slicers would be the best approach since those are more Excel-specific. I might need to double-check the details on PivotTables and how they work in a Windows environment.

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Bette

5 months ago

Okay, let me think this through. I know you can use Object styles to control the appearance of elements, but I don't think that's the right answer here. I'm leaning towards Visibility/graphic overrides.

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Filiberto

5 months ago

Okay, I've got this. The key is to focus on the specific issue - the missing menu selection. I think the most likely cause is that the scheduler's login credentials don't have the right permissions.

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Selma

9 months ago

Hmm, I'm going to have to say D. Mobility burners sound like they'd be a real 'pain point' in a declining industry. Haha, get it? Pain point? Mobility burners? Ah, never mind.

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Shaniqua

10 months ago

I'm going to go with A. The likelihood of an industry producing profits is crucial in deciding how to approach a declining industry. Gotta maximize those dwindling returns!

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Candra

10 months ago

I'm leaning towards C. Externalities like government regulations or market trends can really impact the strategy you need to adopt in a declining industry.

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