Managers Can Make Rational Decisions If ________

question 119

Multiple Choice

Managers can make rational decisions if ________.

• A) the problem is ambiguous
• B) the goals are unclear
• C) time constraints exist
• D) the alternatives are limited

---

Definitions:

Goodwill

Represents the intangible asset arising when a company acquires another business for more than the fair value of its net identifiable assets.

Equity Method

An accounting technique used when an investing company holds significant influence over the investee but does not have full control over it, involving the recognition of income on the investment based on the investee’s net income.

Unrealized Profits

Profits that have been earned but not yet realized through a transaction, such as an increase in value of an asset that has not been sold.

Intercompany Sales

Transactions involving the exchange of goods or services between subsidiaries within the same parent company.