A Manager Has the Task of Collecting and Analyzing Data

question 54

Multiple Choice

A manager has the task of collecting and analyzing data that will help the firm decide where to locate its international operations.Which of the following BEST describes how the manager should handle this task?

• A)conduct extensive research, regardless of the expense, in order to avoid costly mistakes
• B)compare the costs of data collection with the probable payoff it will generate for the firm
• C)continue data gathering until all data have been collected, regardless of how long this takes
• D)focus all data collection on governmental resources because they have the highest reliability

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Definitions:

Goodwill Impairment Testing

A financial exercise to determine if the goodwill of an acquired company has decreased in value, indicating that the company may have overpaid for the acquisition.

ASPE

Accounting Standards for Private Enterprises, a set of accounting practices and standards for private companies in Canada.

Consolidated Statement

Financial reports consolidating the assets, liabilities, and income of a parent organization along with its subsidiary companies, showing them as a single entity.

Goodwill Impairment

A write-down of the value of goodwill on a company's balance sheet when the fair value of the acquired company falls below the value recorded at the time of acquisition.