An Operating Segment Is a Component of a Company

question 58

Multiple Choice

An operating segment is a component of a company

• A)that engages in business activities to earn revenues and incur expenses
• B)whose operating results are regularly reviewed by the company's chief operating officer for budgeting and evaluation purposes
• C)for which financial information is available
• D)all of these choices

---

Definitions:

Hot Spot

A location on the Earth's surface that has experienced active volcanism for a long period, thought to be above a mantle plume.

Divergent Margin

A boundary between two tectonic plates that are moving away from each other, often associated with volcanic activity and seafloor spreading.

Island Arc

A curved chain of volcanic islands located at a tectonic plate boundary, formed by the subduction of an oceanic plate beneath another.

Gabbro

A coarse-grained igneous rock that forms from the slow cooling of magma beneath the Earth's surface, composed mainly of plagioclase feldspar and pyroxene.