In Determining If Two Operating Segments May Be Combined into One

question 31

Multiple Choice

In determining if two operating segments may be combined into one, which of the following factors should be considered?

• A)​similarities regarding profit margins
• B)​whether the nature of the products and services is similar
• C)​whether there is a similar amount of intracompany sales
• D)whether there is a similar number of employees​

---

Definitions:

Cross Section

A plane or surface cut through an object or structure, typically used to reveal its internal composition or structure.

Groundwater

Water stored beneath the Earth's surface within soil or in the gaps and spaces within rock formations.

Infiltrate

The process by which water or other fluids permeate into a substance through pores or small openings, often used in the context of soil absorption or espionage.

Impermeable Unit

A geological formation or material that does not allow fluids to pass through it.