Classify Each of the Following Events as a Commitment, a Subsequent

question 49

Essay

Classify each of the following events as a commitment, a subsequent event or a contingency.Support your decisions.Some may fit more than one classification.For each one, indicate how it would be reflected in the company's financial statements.Assume a December 31 year-end for all companies; assume all amounts are material unless otherwise noted.
A) On November 15, a customer became ill after eating in one of the restaurants operated by the company.The customer is suing the company for lost wages and damages totalling $50,000.No other customers have complained to the company about similar problems, so the company's lawyers believe the claims are without merit.The amount of the claim is very small relative to the company's overall business.
B) A company guarantees a $2,000,000 loan of a subsidiary.They have been the guarantor for five years and have never had to act on their guarantee.
C) On September 30, the company renewed the lease on their office space for five years at a monthly payment of $20,000.
D) On July 1, the company entered into an agreement with its supplier to buy $500,000 worth of goods, based on prices in effect on that date, per year for the next five years.The company is pleased to have the supply assured over the next five years, although to date purchases from that supplier have never exceeded $400,000.E) On January 31, the company issued $5,000,000 in bonds.

• A) On November 15, a customer became ill after eating in one of the restaurants operated by the company.The customer is suing the company for lost wages and damages totalling $50,000.No other customers have complained to the company about similar problems, so the company's lawyers believe the claims are without merit.The amount of the claim is very small relative to the company's overall business.
• B) A company guarantees a $2,000,000 loan of a subsidiary.They have been the guarantor for five years and have never had to act on their guarantee.
• C) On September 30, the company renewed the lease on their office space for five years at a monthly payment of $20,000.
• D) On July 1, the company entered into an agreement with its supplier to buy $500,000 worth of goods, based on prices in effect on that date, per year for the next five years.The company is pleased to have the supply assured over the next five years, although to date purchases from that supplier have never exceeded $400,000.E) On January 31, the company issued $5,000,000 in bonds.

Identify the sources of demographic information and their importance in market segmentation.

Understand the application of segmentation strategies in targeting specific consumer groups.

Understand the importance of alignment between the targeting process and the organization's mission.

Grasp the key variables and tools used in market segmentation, especially in B2B contexts.

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Definitions:

Alice Guy Blaché

A pioneering French filmmaker recognized as one of the first to direct a narrative film and a significant figure in the development of early cinema.

Feature-Length Film

A movie that is long enough to be considered the main or sole film to fill a program, typically over 60 minutes in length.

First Amendment

Part of the United States Constitution that protects freedom of speech, religion, press, assembly, and the right to petition the government.

Bill of Rights

The first ten amendments to the United States Constitution, guaranteeing fundamental civil rights and liberties such as freedom of speech, religion, and press.