All of the Following Statements Regarding a Business Segment Are

question 230

Multiple Choice

All of the following statements regarding a business segment are true except:

• A) A company's gain or loss from selling or closing down a segment is reported separately.
• B) A business segment is a part of a company's operations that serves a particular product line.
• C) A segment has assets, liabilities, and financial results of operations that can be distinguished from those of other parts of the company.
• D) A segment's income for the period prior to the disposal and the gain or loss resulting from disposing of the segment's assets are reported separately.
• E) The income tax effects of a discontinued segment are combined with income tax from continuing operations.

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Definitions:

Diversification

A risk management technique that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.

Negatively Correlated

Refers to two variables that move in opposite directions, meaning when one variable increases, the other decreases, and vice versa.

Positively Correlated

A relationship between two variables in which they move in the same direction, meaning as one variable increases, the other also increases.

401k Retirement Accounts

Tax-advantaged retirement savings accounts offered by employers, allowing employees to save and invest a portion of their paycheck before taxes are taken out.