A New Subsidiary (Scenario)

question 83

Multiple Choice

A New Subsidiary (Scenario)
Philip works for a large multinational corporation with offices in 23 countries, 64,000 employees worldwide, and $8 billion in annual sales. The company was involved in several different industries: automotive parts, rapid transit systems, and recreational vehicles. Philip is the executive vice-president of new technology ventures.
Philip wants you to investigate and potentially launch a business focusing on alternative energy systems. The first area you are to explore is the potential business opportunity of ocean tidal energy. You are to explore what technology already exists that can be exploited, what additional technology development is needed, and figure out the viability of the tidal energy as an entrepreneurial venture.
-When Philip asks you to look at the potential viability of the business opportunity of tidal energy,he is really asking you to complete a ________.

• A)commercialization study
• B)feasibility study
• C)business plan
• D)research and development plan

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Definitions:

Long-Term Liabilities

Financial obligations of a company that are due after a year or more.

Net Income

Net income is the total earnings of a company after subtracting all expenses, taxes, and losses.

Operating Profit Test

A financial metric used to assess a company's profitability from its core operations, excluding effects of financing and taxes.

Operating Segment

A component of an enterprise that engages in business activities from which it may earn revenues and incur expenses.