If a Company Is Very Diversified

question 39

Multiple Choice

If a company is very diversified

• A)it makes it easier to classify the company by industry.
• B)it would not be necessary to provide any segmented information.
• C)it can limit the usefulness of financial analysis.
• D)any problems with a subsidiary would be apparent when examining the consolidated statements.

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Definitions:

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests unintentionally benefit society.

Fairness

The quality of making judgments that are free from discrimination, dishonesty, or injustice.

Ultimatum Game

A game in economic experiments where one player proposes how to divide a sum of money with another, who can accept or decline the offer, with both getting nothing if declined.

Dictator Game

An experimental economics game that measures how fairly individuals allocate resources when they have complete control over distribution.