If the Senior Manager's Prediction Is Accurate,which of the Following

question 104

Multiple Choice

If the senior manager's prediction is accurate,which of the following is inferable?

• A) If TLS does not change to either a product approach or a functional approach, then it will not change its organizational approach at all.
• B) If TLS is not profitable this year and fails to develop any new products, the company will first switch to a functional approach and then to a product approach.
• C) If TLS is profitable, then it could organize itself by customer groups.
• D) If TLS does not change to either a product approach or a functional approach, then it could not have been profitable this year.
• E) If TLS does not change to either a product approach or a functional approach, then it could not have developed any new products.

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Definitions:

Accelerated Depreciation

A depreciation technique where an asset's book value diminishes more quickly than it does with the conventional straight-line approach.

Half-Year Convention

An accounting method used for depreciating assets by which all assets acquired during the year are considered to have been acquired at the midpoint of the fiscal year, affecting the depreciation calculation.

Capital Budgeting Process

The procedure businesses follow to evaluate potential major projects or investments, through stages from proposal generation to project approval.

Favorably Biased

A tendency to present information in a manner that is more positive or beneficial than is justified by the facts.