George,a Chef and Owner of a Popular Restaurant,is Always Visiting

question 49

Multiple Choice

George,a chef and owner of a popular restaurant,is always visiting his competition to observe how they are doing things in their restaurants.He told one of his managers that "I do this because I want to know what is going on.I am always concerned that one of our competitors will surprise us with a new service or menu item like us,but better." George is utilizing ___.

• A)competitive intelligence
• B)environmental scanning
• C)TQM
• D)corporate spying
• E)management by observation

Understand the concept and importance of departmental accounting.

Calculate departmental net income using revenue and expense data.

Differentiate between direct and indirect expenses and their allocation to departments.

Allocate indirect expenses based on appropriate bases such as square footage, number of employees, or other relevant factors.

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Definitions:

1933 Act

Also known as the Securities Act of 1933, this U.S. law was enacted to protect investors by requiring transparency in financial statements so investors can make informed decisions about investments.

Registration Statement

A set of documents, including a prospectus, filed with a securities regulatory agency (such as the SEC in the U.S.) by a company intending to go public, disclosing essential financial and management information.

Rule 10b-5

A regulation under the Securities Exchange Act of 1934 prohibiting any act or omission resulting in fraud or deceit in connection with the purchase or sale of any security.

1933 Securities Act

A federal statute enacted to govern the offer and sale of securities, aiming to ensure transparency and fairness in the securities market by requiring disclosures through registration of securities.