Potential Costs of Providing Segment Information Include

question 46

Multiple Choice

Potential costs of providing segment information include:

• A) Management taking extra risks in order to attempt to generate increased returns in its segment.
• B) Allowing current or potential investors to identify that the entity is earning high profits in a segment.
• C) Disclosing that a segment is making a loss. This may lead to take-over bids by other organisations.
• D) Allowing current or potential competitors to identify that the entity is earning high profits in a segment. This may increase competition through new entrants or an attempt to replicate the factors leading to the entity's success.
• E) All of the given answers.

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Definitions:

Combining Vowel

A letter, often 'o', used in medical terminology to join word roots, making the term easier to pronounce.

Polydipsia

A medical condition characterized by excessive thirst and fluid intake.

Poly-

A prefix in medical terminology meaning 'many' or 'much'.

Arousal

Arousal refers to the physiological and psychological state of being awake or reactive to stimuli, including heightened physical activity and alertness.