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IMANET Exam CMA 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?

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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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Selma
2 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
2 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
2 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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Herschel
22 days ago
C) Externalities in industry development.
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Adolph
25 days ago
B) The nature of entrants to an industry.
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Katina
1 months ago
A) Likelihood of an industry produce profits.
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Tommy
3 months ago
I think D is the correct answer. Mobility burners are a key factor in a declining industry, like high switching costs for customers.
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Lorrie
1 months ago
I believe C is also significant, externalities in industry development can greatly influence strategy choices.
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German
2 months ago
I think A is also crucial, as the likelihood of an industry producing profits can impact strategy decisions.
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Shawnda
2 months ago
I agree, D is definitely an important factor to consider in a declining industry.
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Svetlana
3 months ago
Hmm, I'm pretty sure it's B. The nature of entrants to an industry definitely plays a role in the strategy you choose for a declining industry.
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Jody
2 months ago
I think it's also important to consider the likelihood of an industry producing profits.
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Magnolia
2 months ago
I agree, the nature of entrants can definitely impact the strategy chosen.
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Ligia
2 months ago
I think it's also important to consider the likelihood of an industry producing profits.
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Ira
3 months ago
I agree, the nature of entrants can definitely impact the strategy chosen.
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Eveline
3 months ago
But what about the nature of entrants? That could also impact strategy decisions.
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Leonie
3 months ago
I agree with Serita, profitability is a key factor in strategy choice.
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Serita
4 months ago
I think the likelihood of an industry producing profits is important.
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