Which of the Following Illustrates a Programmed Decision

question 35

Multiple Choice

Which of the following illustrates a programmed decision?

• A) A cafe owner buys a hundred cartons of coffee every month.
• B) A fast food chain decides to enter into a new franchise agreement.
• C) A content development company decides to sue a competitor for copyright infringement.
• D) A health drink manufacturing company decides to launch a new product in the market.
• E) An IT company decides to lay off a hundred employees.

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Definitions:

Construction Period Interest

This is the interest accrued on funds borrowed to finance the construction of a property and is typically capitalized into the cost of the asset until it is ready for its intended use.

Management Manipulation

The unethical practice of altering financial data or reports to distort a company’s financial health or performance.

Asset Impairments

A reduction in the book value of an asset when its market value falls below its carrying amount on the balance sheet.

Fair Value

The estimated market price of an asset or liability based on current conditions and mutually informed buyer and seller transactions.