Vanik Corporation Currently Has Two Divisions Which Had the Following

question 104

Multiple Choice

Vanik Corporation currently has two divisions which had the following operating results for last year: Because the Rubber Division sustained a loss, the president of Vanik is considering the elimination of this division. All of the division's traceable fixed costs could be avoided if the division was dropped. None of the allocated common corporate fixed costs could be avoided. If the Rubber Division was dropped at the beginning of last year, the financial advantage (disadvantage) to the company for the year would have been:

• A) ($20,000)
• B) $20,000
• C) $25,000
• D) ($25,000)

Explain the process of homeostasis and its importance in maintaining the body's internal balance.

Identify and differentiate between intrinsic and extrinsic motivators and their impact on behavior.

Understand the concept of arousal and its optimal levels for motivating behavior.

Recognize the significance of self-concept and personal potential in humanistic theories of motivation.

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Definitions:

Ownership

A legal right to possess, use, control, and dispose of an asset or property.

Minority Active Equity Investments

Investments in which a company has a small, non-controlling stake but is still actively involved in the management or operations of the investee company.

Equity Method

An accounting technique used by companies to record investments in other companies, where the investment is represented as an asset and changes in the investment's value are reflected in the investor's income.

Held-To-Maturity Debt Investments

Debt securities purchased with the intent and ability to hold until their maturity date.