Answer:
D) value proposition
Explanation:
A good brand value proposition should state all the benefits of your product or service since it is the promise that your brand (or company) is delivering to potential or current customers in order for them to purchase your product or service instead of the competition's.
The description of TBS Bikes' Surami series with features like speed, safety, and pollution control showcases the product differentiation of the bike which sets it apart in the market.
The description of TBS Bikes' new series called Surami, which promises features such as speed, safety, good performance, and pollution control, is outlining the product differentiation of the bike. Product differentiation is a marketing strategy that businesses use to distinguish a product from similar offerings on the market. By highlighting unique features like the five-gear system, safety elements, and environmental benefits, TBS Bikes is creating a distinct identity for the Surami model that resonates with customers' desires for speed and responsible riding.
Although you are feeling full after a large dinner, you are considering having a bowl of ice cream. You will choose to eat the ice cream if____________.
Answer:
the marginal benefit of enjoying the dessert outweighs the marginal cost of being too full.
Explanation:
At a large dinner, you might not necessarily wan dessert as you compare the benefits of the enjoying the ice cream against the cost/effect of having the ice cream on your stomach.
The marginal benefit here is enjoying the ice cream while the marginal cost is the effect of taking ice cream on your stomach's comfort after a rather large dinner.
In the end, if you will rather enjoy the ice cream than bother about stomach discomfort or bloating, then you can have the ice cream. If otherwise, do not have the ice cream.
Cheers.
At World Spice Market, Inc., the department manager uses a hand-held scanner to determine the quantity of each spice the store has on its shelves, how many jars of each spice was sold the past week and the past month, and exactly when the next shipment of these spices is expected to arrive. World Spice Market embraces the strategy of ______
Answer: Using the technology to stay responsive to the customer requirement
Explanation:
According to the given question, the world spice market is one of an organization that embrace the different types of strategies of using the technology for staying more responsive as compared to others according to the actual needs of the customers.
We can also improve the company services such as communication, website services and also the software of an organization so that the company stay more responsive in the market. They an also easily determine the each spice quantity.
Therefore, The above given answer is correct.
The department manager at World Spice Market, Inc. utilizes supply chain management strategies by using a hand-held scanner for inventory and sales tracking, optimizing the flow of spices from supply to customer, and enhancing customer service and efficiency.
At World Spice Market, Inc., the department manager's use of a hand-held scanner to track inventory levels, sales data, and shipment schedules signifies the company's engagement in supply chain management. This strategy involves optimizing the flow of products from suppliers to customers by leveraging technology and data analytics to make informed decisions on inventory and distribution.
For example, similar to the tactics used by PepsiCo and Kraft USA, the manager is equipped to adapt to sales trends and prevent stock-outs or excess inventory, thereby enhancing customer service and operational efficiency. These companies utilize data and real-time analytics to tailor their distribution and inventory strategies, highlighting the significance of customer intimacy in today's market.
Using the acquisition method, a company acquires all of the shares of stock of another company. In-process research and development is present and estimated to have a $300,000 fair value. How would you account for these costs?
A) Always expense these costs at the acquisition date
B) Expense these costs unless such costs represent assets with alternative future use
C) Recognize these costs as an intangible asset and amortize the cost over a reasonable life
D) Recognize these costs as an intangible asset and test for impairment
E) These costs have no impact on the purchase.
Answer:
D) Recognize these costs as an intangible asset and test for impairment
Explanation:
Given that
The estimated fair value of the research and development = $300,000
Since the research and development estimated fair value treated as an intangible asset that is cannot be seen or touched but it would be recognized in the financial statements as an impairment test like as goodwill which is also an intangible asset plus it also use for impairment test.
Final answer:
In-process research and development costs acquired in a business combination should be recognized as an intangible asset and tested for impairment until the project's outcome is known.
Explanation:
When using the acquisition method to account for a business combination, and in-process research and development (IPR&D) is present with an estimated fair value of $300,000, the accounting treatment for these costs should be in line with the financial reporting standards. Specifically, the correct answer is:
D) Recognize these costs as an intangible asset and test for impairment.
This is because the recognized IPR&D should be treated as an indefinite-lived intangible asset until the completion or abandonment of the associated R&D efforts. At each reporting date, and until the project is completed or abandoned, the company should test the IPR&D for impairment. Once the project is completed, the asset is considered definite-lived and should be amortized over its useful life. If the project is abandoned, the costs are expensed.
What are demand schedule and the demand curve and how are they related? Why does the demand curve slope downward? Does a change in consumers' tastes lead to a movement along the demand curve or a shift in the demand curve? Explain in detail. Does a change in price lead to a movement along the demand cure or a shift in the demand curve? Explain in detail.
Answer:
Demand schedule is a table that shows the quantity demanded for a goods and service at different stages, while a demand curve is a graphical representation that shows the relationship between quantity demanded and price of the goods and service.
A demand curve slopes downward for many reason's , some of which includes, price or income effect and substitution effect
A change in consumer taste and price can lead to a movement along the demand curve.
Explanation:
Demand schedule is a table that shows the quantity demanded for a goods and service at different stages, while a demand curve is a graphical representation that shows the relationship between quantity demanded and price of the goods and service.
A demand curve slopes downward for many reason's , some of which includes, price or income effect and substitution effect
A change in consumer taste and price can lead to a movement along the demand curve.
Final answer:
A demand schedule depicts quantity demanded at various prices, while a demand curve illustrates this relationship graphically based on the law of demand.
Explanation:
Demand Schedule: A demand schedule is a table showing the quantity demanded at different prices in the market.
Demand Curve: The demand curve is a graphical representation of the relationship between quantity demanded and price in a given market.
Law of Demand: The law of demand states that as the price of a good decreases, consumers will buy more of that good.
A firm determines that it can hire one more worker at a wage of $80 per day, and its MRP would increase by $100 for the day. The firm also determines that it can rent one more piece of capital equipment at a cost of $200 per day, and its MRP would increase by $250 for the day. In order to maximize profit, the firm should
a. hire one more worker but not rent a piece of equipment
b. hire one more worker and also rent a piece of equipment
c. reduce the number of workers and rent more equipment
d. rent one piece of equipment but not hire a worker
e. reduce the amount of equipment and hire more workers
Answer:
d. rent one piece of equipment but not hire a worker.
Explanation:
when firm rents the equipment then the MRP is "250" which is higher than hiring one more worker, Therefore, the firm only rent one equipment will not hire any worker.
True or False. The difference between Q3 (quartile 3) and Q1 (quartile 1) is referred to as the IQR (interquartile range) and is a measure of the middle 50% of our data.
Answer: True
Explanation:
The interquartile range is also known as midspread and it is the between the first and third quartile (25th and 75th percentile respectively) serving as a robust measure of sample dispersion.
Interquartile range (IQR) = Q3 - Q1
As a measure of variability, it is based on splitting data sets into quartile (four equal portions). The values differentiating these portions are known as the first, second, and third quartile which are represented as Q1, Q2, and Q3, respectively.
True, the IQR is the difference between Q3 and Q1, indicating the spread of the middle 50% of data.
True, the difference between Q3 (quartile 3) and Q1 (quartile 1) is referred to as the IQR (interquartile range) and is a measure of the middle 50% of our data. The IQR is specifically calculated by subtracting Q1 from Q3. For example, if Q3 is 9 and Q1 is 2, the IQR would be 7 (9 - 2 = 7). This statistical measure is useful for identifying the spread of the central portion of the data set and for determining potential outliers. A data point is considered a potential outlier if it is more than 1.5 × IQR above Q3 or less than 1.5 × IQR below Q1.
Economics studies Scarcity.
1. The social institutions used to address scarcity.
2. What to produce, how to produce it, and who gets it.
3. All of the above.
Answer:
2. What to produce, how to produce it, and who gets it.
Explanation:
Scarcity of resources is the major issue, Economics deals with.
In any economy resources are scarce i.e limited in quantity and how efficiently those resources are used is what Economics revolves around.
The central problems in an economy are:
What to produceHow to produceFor whom to produceEconomics aims at answering this central problem.
Shen is interning to become a nurse. Mila is a very skilled and helpful nurse, but also very busy. Shen was glad to have the chance to talk with her over lunch one day and learned a great deal in that time. If Shen wants to learn to become like Mila, he should
Answer:
Learn the skills, aptitudes and other qualities of a nurse that Mila has.
Explanation:
Shen should learn the skills , aptitudes and other qualities of a nurse that Mila has which have given her the badge of a good nurse.
The qualities, skills and aptitudes may be-
Attending to the patients on time.Be soft spoken with the patients.Give proper and effective treatment to the patients.Take regular feedback about the patient's health.Reporting the patient's health at regular time intervals to the senior nurse or the doctor in charge, whichever the case may be.This appraisal approach estimates the value of the present worth of the future rights to the income the property generates by converting the net income of the property into a value. This is known as:_____________.
Answer:
The income approach.
Explanation:
This appraisal approach evaluates the importance of the present value of the future rights to the income the estate generates by converting the net income of the estate into a value. This is known as the income approach which is also recognized as capitalization. It is a type of real estate appraisal method and it is also used to appraise investment or income-producing properties.
Joanne sells silk-screened T-shirts at community festivals and craft fairs. Her marginal cost to produce one T-shirt is $ 5.50 . Her total cost to produce 70 T-shirts is $ 465 comma and she sells them for $9 each. a. Find the linear cost function for Joanne's T-shirt production. b. How many T-shirts must she produce and sell in order to break even? c. How many T-shirts must she produce and sell to make a profit of $700?
Answer:
Hey there!!
1) C(x) = 80 + 5.50x
2) 22.86 ≅ 23
3) 222.86 ≅ 223
Explanation:
1) C(x) = FC + V(x)
465 = FC + 5.50 * 70
FC = 465 - 385
FC = 80
C is Total Cost
FC is Fixed Cost
V is Unit Variable Cost
We know that the variable cost is 5.50 per unit and that total cost for producing 70 T-shirts is $465.
By replacing in the formula and clearing, we can find out the value of the fixed cost of production and complete the total cost function.
2) First, we calculate the unit margin contribution
c = P - V
c = 9 - 5.50
c = 3.50
c is Unit Margin Contribution
P is Price
V is Unit Variable Cost
then we calculate break-even point
[tex]X= \frac{TFC}{c}\\\\X= \frac{80}{3.5} = 22.86[/tex]
TFC is Total Fixed Cost
c is Unit Revenue
3) using the break-even point, we can calculate
[tex]X= \frac{TFC}{c}\\\\X= \frac{80+700}{3.5} = 222.86[/tex]
Genève is a member of the board of directors and the chief financial officer of the corporation. Under the duty of care that she owes that corporation, she does NOT need to:
a. attend board meetings and oversee the corporation's employees and other officers.
b. attend presentations and make a careful study of business choices before making decisions.
c. oversee every aspect of the business, including such things as ordering merchandise and arranging for janitorial services.
Answer:
The correct answer is c."oversee every aspect of the business, including such things as ordering merchandise and arranging for janitorial services."
Explanation:
The chief financial officer is the person in charge of the financial administration of the organization, their tasks are focused on planning, implementing and analyzing the financial information of the company. Therefore, a chief financial officer like Genevieve does not get involved in activities such as ordering merchandise and arranging for janitorial services.
Because you understand the law of supply, you can deduce that the correct graphical representation of the supply for CDs must be_______. Moreover, you know that at a price of $10 per CD, the quantity supplied_______ is five million CDs.
Answer:
The answers are S1 where S1 is supply curve that has the potential to move to S2 and Quantity Supplied
Explanation:
Referring to the diagram below, an increase in supply occurs when the supply curve shifts to the right as shown in diagram below. The original demand and supply curves equal D1 and S1, respectively. Thus, the original equilibrium equals E1, with a price and quantity equal to P1 and Q1 respectively. However, when the supply increases to S2, the market moves to a new equilibrium, E2, with equilibrium price decreasing to P2 while equilibrium quantity increases to Q2.
What is equilibrium: In economics as the may be, equilibrium is the circumstance in which market forces such as demand and supply are balanced. That is, there is an absence of external influences on the values of economic variables therefore making the process unchanged.
Because you understand the law of supply, you can deduce that the correct graphical representation of the supply for CDs must be upward-sloping. Moreover, you know that at a price of $10 per CD, the quantity supplied is five million CDs.
Based on the law of supply, which states that as the price of a good increases, the quantity supplied also increases, the correct graphical representation of the supply for CDs would be an upward-sloping curve.
Graphical Representation of Supply for CDs: The supply curve for CDs will slope upward from left to right. This indicates that as the price of CDs increases, suppliers are willing to supply more CDs to the market.
Quantity Supplied at $10 per CD: If the price of a CD is $10, and the quantity supplied is five million CDs, we represent this point as follows:
[tex]\[ \text{Price per CD} = $10 \][/tex]
[tex]\[ \text{Quantity Supplied} = 5 \text{ million CDs} \][/tex]
This point [tex](Price = $10, Quantity = 5 million CDs)[/tex] would be plotted on the supply curve. It indicates that at a price of $10 per CD, suppliers are willing to supply five million CDs to the market.
The complete question is:
Because you understand the law of supply, you can deduce that the correct graphical representation of the supply for CDs must be_______. Moreover, you know that at a price of $10 per CD, the quantity supplied_______ .
3. Nghiep gave his mother half of his weekly earnings, and then spent half of what was left on a new shirt. He then had $32. What were his weekly earnings?
Answer:
$128
Explanation:
Given: Nghiep gave half of his weekly salary to his mother.
Spent remaining half on a new shirt.
Finally he is left with $32
Lets assume Nghiep´s weekly earning be "x".
As given, Nghiep gave his mother half of weekly earning.
∴ Remaining earning= [tex]x- \frac{x}{2}[/tex]
Taking LCD as 2
⇒ Remaining earning= [tex]\frac{2x-x}{2} = \frac{x}{2}[/tex]
Hence, remaining salary giving half earning to his mother is [tex]\frac{x}{2}[/tex]
Now, as given Nghiep spent half of what was left on a new shirt.
∴ Amount spent on shirt= [tex]\frac{x}{2} \times \frac{1}{2} = \frac{x}{4}[/tex]
Next, finding the amount left with Nghiep after spending on shirt.
⇒ Amount left after spending on shirt= [tex]\frac{x}{2} - \frac{x}{4}[/tex]
taking LCD as 4
⇒ Amount left after spending on shirt= [tex]\frac{2x-x}{4} = \frac{x}{4}[/tex]
As given, Nghiep left with $32 after spending on shirt.
∴ We can form an equation for amount left with Nghiep after spending on shirt.
⇒[tex]\frac{x}{4} = 32[/tex]
Now, solving it to find the weekly earning of Nghiep.
⇒ [tex]\frac{x}{4} = 32[/tex]
Multiplying both side by 4.
⇒[tex]x= 32\times 4[/tex]
∴ [tex]x= \$ 128[/tex]
Hence, Nghiep´s weekly earning is $128.
As a result of the wealth effect, a sudden increase in the value of stock will cause households that hold a significant amount of stock assets to_________.
Answer:
Increase consumption and reduce saving.
Explanation:
Saving is that portion of revenue that may not be planned to spend on current consumption. The saving-income partnership is considered saving-function. Put it simply, saving purpose or tendency to save refers the saving level to level of income.
The role of spending is a connection between the total disposable income and actual usage. It is meant as a concise overview of domestic behavior, reflecting the concept of smoothing use. The consumer function is typically assumed to be upward-sloping, but it has a slope of less than one.Most projects will employ bottom-up estimating at some point to serve as a basis for estimating cash flow needs and for controlling the project.
True
False
Answer:
The statement is TRUE
Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations.
A) alternative evaluationsB) cognitive dissonancesC) subculturesD) social classesE) occupations
Answer:
C) subcultures
Explanation:
It should be noted that each culture contains smaller ,subcultures or groups of people with shared value systems based on common life experiences and situations.
According to this question, we are asked about how culture contains smaller , subcultures or groups of people with shared value.
As a result of this we can see that culture us composed of group of people with almost the same value.
Therefore, each culture contains smaller , subcultures or groups of people with shared value systems.
Learn more about subcultures at:
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Both perfectly competitive and monopolistically competitive industries have many firms, in fact so many that, in the long run________________.
Answer:
They end up earning normal profits only and that their economic profits are competed away
Explanation:
Both perfectly competitive and monopolistically competitive industries do have many firms.
The above statement does hold true.
paint firms that operates in a monopolistic competitive industry and has been holding over 80 percent market share for the past 5 decades ,
However, in the past few years new emerging brands offered better prices and increased their network, and have focused on increasing their market share resulting in reduction in the share of the dominant
This clearly shows that being in the industry for a long time definitely results in a change in firm's dominance.
Talking about the firms under perfectly competitive markets an example of goldsmith market there are many shops in the market for so many years.
But , due to increased quality and services two shops might have gained a significant market share and now can be stated as next to duopolies of the market they operate in.
With just the time spent in the market and changing trends firms have an impact on their share.
It is thus clearly conclusive that competitive markets firms do exist in the industry.
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U Co. had cash purchases and payments on account during the current year totaling $455,000. U's beginning and ending accounts payable balances for the year were $64,000 and $50,000, respectively. What amount represents U's accrual-basis purchases for the year?
Answer:
$441,000
Explanation:
The U Co. accrual- basis purchases for the current year can be determined using the following mentioned formula:
Accrual basis purchases=ending accounts payable balance+Cash paid for purchases during the current year-opening accounts payable balance
Accrual basis purchases=$50,000+$455,000-$64,000=$441,000
Jeremy Bridges is an executive for Green Web Designs, where his primary role is to ensure the security of business systems and develop strategies and safeguards to protect the company from online viruses and hackers. What is Jeremy's role within the company?
A. Chief Executive Officer (CEO).
B. Chief Security Officer (CSO).
C. Chief Procurement Officer (CPO).
D. Chief Technology Officer (CTO).
Answer:
Option D
Explanation:
A Chief Technology Officer (CTO), also identified as a Chief Technical Officer or Chief Technologist, refers to the executive position in a corporation or any other agency whose role focuses on the institution's technological and scientific challenges.
A CTO is much like a Chief Information Officer (CIO). CTOs should make choices for the underlying development architecture that closely reflects with the priorities of the company, while CIOs collaborate with the IT team members of the government to carry out daily operations.
An in-depth understanding of ethics is important to the long-term viability of a business because unethical decisions will negatively and directly impact all of the following except which one?a. The business's customersb. The business's suppliersc. The business's imaged. The business's number of products
Answer:
d. The business's number of products
Explanation:
The lack of ethics in a firm does not necessarily affect the number of products it makes. In fact, it could actually enhace the output.
For example, if a large manufacturer decides to employ child labor in a developing country, it could see its output skyrocket without incurring in significant costs, but the action in itself is highly unethical, and if it was found out, it would affect the company's image, customers, and suppliers.
Macy's (the department store chain) classifies its clothing held for sale as A. raw materials inventory. B. finished goods inventory. C. work in process inventory. D. merchandise inventory.
Answer: Merchandise Inventory
Explanation:
Merchandise inventory are finished products purchased by a business for which they plan to sell at a higher price than cost price. The clothing held for sale at Macy's department store is an example of merchandise inventory.
If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties?
Answer:
Seller
Explanation:
If a cooperating broker accepts the offer of subagency from a listing broker, The cooperating broker owes fiduciary duties to the Seller.
A fiduciary duty is an obligation to act in the best interest of another party. ... A person acting in a fiduciary capacity is held to a high standard of honesty and full disclosure in regard to the client and must not obtain a personal benefit at the expense of the client.
A cooperating broker who accepts subagency owes fiduciary duties to the listing broker's client, typically the seller, and must prioritize their interests in the transaction.
If a cooperating broker accepts the offer of subagency from a listing broker, the cooperating broker owes fiduciary duties primarily to the listing broker's client, who is typically the seller of the property. In such an arrangement, the cooperating broker is expected to act in the best interests of the seller, providing loyalty, confidentiality, obedience, accountability, and reasonable care in handling the transaction. It is crucial for a subagent to understand that their fiduciary responsibility is to the seller, and thus, they must prioritize the seller's interests above their own or any third party's, including the prospective buyer's.
Which of the following service providers are most likely to use demand-based pricing? a. Dentists b. Lawyers c. Hair stylists d. Doctors e. Cruise ships
Answer: Cruise Ships
Explanation:
The professional services rendered by Dentists, Lawyers, Doctors and Hairs Stylists are based on need of clients and these are usually fixed for specific services such as consultation in case of dentists and doctors.
The only service which is priced based on demand is Cruise Ships, as this is considered as a luxury item and the pricing moves with the season and the advance timing of the service
Comparable property "A" has central air conditioning worth approximately $2,000. Comparable property "B" does not. The subject property does not have central air conditioning. To adjust, an appraiser should:________.
To adjust, an appraiser should: Subtract air conditioning value ($2,000) from comparable "A" to make it more like the subject property. Adjust comps to the subject. Never adjust or change the subject property
Explanation:
The comparable properties are adjusted so that they show that they are higher or lower. Settlements on comparable characteristics are calculated, not on the subject. You will then add or subtract changes for positive or negative characteristics if a comp was sold for 180,000 dollars .
There are three kinds of approaches to value, and they include the approach of sales comparison, costing and revenue capitalization.
The approach of comparison of revenues is the most common approach for the valuation of immobilization.
An attractive industry is one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, and low rivalry among firms.True/false
Answer:
False.
Explanation:
An attractive industry are not one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, and low rivalry among firms.
An industry is defined by a group of firm that produce good and service, which are close subtitute and bargaining power of supplier are not considered as entry barrier to a firm in the open market. Industry with high fixed cost can pose high degree of rivalry among firm.
Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $90,000 in net income and paid $20,000 in dividends. Total assets at the end of the year were $215,000. How much was stockholders' equity at the end of the year?A. $130,000B. $110,000C. $150,000D. $135,000
Answer:
The correct answer is B. $110,000.
Explanation:
Equity balance mean what a business owes to its owner. The amount invested by owner and net profit earned is part of it is part of equity. Dividend in case of company equals to drawing. It means that equity is net of any dividend payment made by the company.The detail calculation are given below.
Stockholders' equity opening balance $ 40,000
Year net income $ 90,000
Dividend paid ($ 20,000)
Stockholders' equity closing balance $ 110,000
Write a statement that increments total by the value associated with amount . That is, add the value associated with amount to that associated with total and assign the result to total .
Answer:
total = total + amount
Explanation:
The statement that increments total by the value associated with amount i.e add the value associated with amount to that associated with total and assign the result to total is:
total = total + amount
When the demand for an initial public offering (IPO) of securities exceeds the number of securities issued, the offering is deemed to be:___________ A) Oversubscribed B) Undersubscribed
Answer:
A) Oversubscribed
Explanation:
An IPO is described as oversubscribed when the demand for the shares on offer exceeds the stock available. The interest in the IPO by investors is very high that the shares on offer cannot meet the demand. The degree of the over-subscription is expressed by a multiple. For example, Company XYZ shares are oversubscribed two times.
An oversubscribed share will often transact at a higher price when trading begins. A company whose shares have been oversubscribed can take advantage and offer more shares. Over-subscription contrasts under-subscription, which is a situation of low demand for an IPO that results in some shares not being bought.
Convenience products typically use a. digital distribution. b. short marketing channels. c. intensive distribution. d. exclusive distribution. e. selective distribution.
Answer:
c. Intensive distribution
Explanation:
Convenience goods refers to those goods which are purchased conveniently without thinking much. For example grocery purchases.
Convenience goods are frequently purchased by the consumers.
Channels of distribution refers to the medium via which goods are transferred from the manufacturers to it's consumers. All the activities in the middle of this cycle form the channel of distribution such as wholesalers, intermediaries, retailers etc.
For convenience goods, an intensive channel is usually used which means making convenience goods available at as many places as possible since these are the goods which are frequently purchased.
So it means to make such goods available in as many outlets as possible, i.e intensively distributed.
The statement made by Lynn Turner, former SEC chief accountant, "Are the auditors going to serve management, or are they going to serve the best interests of the investing public?", refers to concerns about:
a. Low-balling audit bids
b. Conflict between professionalism and commercialism
c. Fraud in financial statements
d. Opinion shopping
Answer:
B. Conflict between professionalism and commercialism
Explanation:
The conflict between professionalism and commercialism speaks to the debate on satisfying the management of an organisation as an auditor in order to meet economic situations and the need to be professionally independent of management in order to make a true and fair statement of the state of the organisation available to the shareholders as well as potential investors and the general public.
Because the management of an organisation runs the day to day affairs of that organisation, the Auditor in performing his duty interacts more with management and as such, the security of his future engagements may depend on favourable opinions of the management. This is commercialism
However, professionalism dictates that ethically, irrespective of the position of the management of an organisation, an auditor should always report the true and fair state of the business.
This represents the conflict expressed by Lynn Turner.