A Business Segment Is Defined by AASB 8 As

question 54

Multiple Choice

A business segment is defined by AASB 8 as:

• A) A component of an entity that is of separable and identifiable interest to a section of stakeholders of the entity.
• B) A distinguishable component of an entity and that component is engaged in providing an individual product or service or group of related products or services and is subject to risks and returns that are different from those of other distinguishable components of the entity.
• C) An identifiable component of an entity that is engaged in providing an individual product or service to other entities within the group and is subject to special risks and returns as a result of relying on other components of the entity.
• D) An identifiable component of an entity based on functional relationships with suppliers or customers or financiers established over a period of time.
• E) None of the given answers.

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Definitions:

Minimizing Losses

Strategies or actions taken by businesses or investors to reduce financial losses or minimize risks.

Total Profit

The total amount of money a business has earned after all expenses have been deducted from its total revenue.

Profit-Maximizing

A strategy or goal of businesses to achieve the highest possible profit, where the marginal cost of production equals the marginal revenue from sales.

Total Revenue

The total amount of money generated by a business from selling goods or services before any expenses are subtracted.