Diversification into a New Industry Cannot Be Considered a Success

question 55

Multiple Choice

Diversification into a new industry cannot be considered a success unless it results in

• A) easing the means of entry.
• B) boosting performance of the existing business.
• C) lowered cost of entry.
• D) enhanced industry attractiveness.
• E) enhanced shareholder value.

Recognize the impact of depreciation on financial statements.

Identify costs involved in the acquisition of fixed assets.

Understand how changes in estimates affect depreciation calculation.

Discriminate between capital and revenue expenditures.

---

Definitions:

Exhaust Gas Recirculation

A method to reduce nitrogen oxide emissions in petrol/gasoline and diesel engines by recirculating a portion of an engine's exhaust gas back to the engine cylinders.

OBD II

On-Board Diagnostics II, a standardized system in vehicles that monitors and reports on the status of various vehicle subsystems.

OBD II

On-Board Diagnostics, second generation; a standardized system that allows electronic access to a vehicle's diagnostic information.

Malfunctions

Failures or dysfunctions in a system, equipment, or part, often causing it to operate incorrectly or not at all.