To Determine Whether a Substantial Portion of a Firm's Operations

question 22

Multiple Choice

To determine whether a substantial portion of a firm's operations are explained by its segment information, the combined revenue from sales to unaffiliated customers of all reportable segments must constitute at least:

• A) 10% of the combined revenue of all operating segments.
• B) 75% of the combined revenue of all operating segments.
• C) 10% of the combined revenue from sales to unaffiliated customers of all operating segments.
• D) 75% of the combined revenue from sales to unaffiliated customers of all operating segments.

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Definitions:

Variable Pay

A portion of employees’ pay that is based on a measure of performance.

Performance Measure

Metrics or standards used to evaluate the effectiveness, quality, or success of a task, process, or organization.

Performance Measure

A metric or standard used to evaluate the efficiency, effectiveness, or success of an individual's or organization's actions.

Productivity Restriction

Limitations or constraints that reduce the effectiveness or efficiency of work output.