An Operating Segment Is a Component of a Company That

question 73

Multiple Choice

An operating segment is a component of a company that does all of the following except

• A) has financial information available.
• B) engages in business activities to earn revenues and incur expenses.
• C) is part of a publicly held company.
• D) has operating results that are regularly reviewed by the company's chief operating officer.

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Definitions:

Direct Influence

The immediate impact or control one individual or group has over another's actions or decisions.

Empirical

Based on, concerned with, or verifiable by observation or experience rather than theory or pure logic.

Theoretical

Pertaining to a system of ideas intended to explain phenomena, often abstract and not immediately practical.

Black Sheep Effect

The tendency for groups to judge deviant in-group members more harshly than comparable out-group members, often leading to greater punishment or exclusion of the deviant in-group member.