____ Are Sometimes Used to Consolidate and Spin Off Poor

question 131

Multiple Choice

____ are sometimes used to consolidate and spin off poor performing businesses and to allow a company to focus on its core businesses, thus lowering the firm's level of diversification.

• A) Joint ventures
• B) Synergistic alliances
• C) Horizontal complementary alliances
• D) Dynamic alliance networks

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Definitions:

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as the standard guidelines for financial accounting.

Purchasing Department

The division within an organization responsible for acquiring goods, services, and equipment necessary for its operations.

Weighted Average Cost Flow Assumption

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items available during the period.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.