Scenario - Britney Marr

question 126

Multiple Choice

Scenario - Britney Marr
The opportunity to gain a foothold in the snack cracker industry had just been found. Britney Marr, an account executive manager for Baked Wheat Industries had developed an interest in wheat crackers two months ago when one of her newly hired account execs, Amy Bender, had convinced her about the high margins and promising future associated with that market. Marr had always believed that if you do your homework in hiring the best people then it only makes sense to listen to their recommendations and implement their suggestions. Marr had given her approval to Bender to explore opportunities to move into this promising new market. This morning, Bender had reported that the Jackson Corporation had severed its contract with Feel Good Crackers Incorporated. Apparently, the Feel Good salesman had shared sensitive information about Jackson at a cocktail party. Bender had already established a good relationship with Feel Good buyers and so recognized this as an opportunity to expand her market into wheat crackers.
-Marr's behavior provides an example of:

• A) the use of scalar rope.
• B) division of organization.
• C) the principle of inversion.
• D) unity of direction.
• E) all of these.

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Definitions:

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright.

Consolidation

The process of combining financial statements of a parent company with those of its subsidiaries to present as one economic entity.

Ownership Percentage

The share of ownership interest a person or entity holds in a company, typically expressed as a percentage of the outstanding shares.

Acquisition Method

The method used in accounting for assets acquired and liabilities assumed in a business combination.