Unrelated Businesses

question 88

Multiple Choice

Unrelated businesses

• A)sell products from the different businesses to much the same types of buyers and retail outlets.
• B)have dissimilar value chains and resource requirements with no competitively important cross-business commonalities at the value chain level.
• C)perform better than just the sum of the individual businesses.
• D)will always have several key suppliers in common.
• E)employ production methods that create economies of scale.

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Definitions:

Purchases Journal

A special journal used to record all purchases of merchandise on credit, tracking the accumulation of goods over a period.

Equipment Purchased

The acquisition of physical assets like machinery or technology used in the production of goods or services.

Accounts Receivable Subsidiary Ledger

A detailed ledger that tracks individual customer transactions and balances, complementing the overall accounts receivable account.

Record Sale

To record a sale refers to the process of documenting a sales transaction in the accounting books, acknowledging the exchange of goods or services for payment.