In Deciding Whether to Eliminate a Business Segment,managers Should Consider

question 28

True/False

In deciding whether to eliminate a business segment,managers should consider which costs and benefits will change as a result of the decision.Costs and benefits that will not change will not be relevant to the decision.

Understand classic leadership styles and their application within group settings.

Apply effective communication skills (verbal, nonverbal, focusing, attending, and responding) within a group.

Utilize conflict resolution skills (negotiating, mediating, moderating) effectively in group leadership.

Recognize the importance and impact of environmental and social factors on group dynamics and leadership styles.

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Definitions:

SFAS No.123

A Statement of Financial Accounting Standards providing guidance on stock-based compensation, requiring companies to expense the cost of employee services received in exchange for an award of equity instruments.

APB No.25

Accounting Principles Board Opinion No. 25, which outlined the method for accounting for stock issued to employees, focusing primarily on the intrinsic value method.

Intrinsic Value

The inherent or fundamental value of an asset, investment, or company based on underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.

Diluted Earnings

A metric that shows a company's earnings per share if all convertible securities were converted into common stock, often indicating a worst-case scenario for earnings per share.