Under Which of the Following Circumstances Would an Asset Be

question 59

Multiple Choice

Under which of the following circumstances would an asset be considered impaired?

• A) A costly piece of diagnostic equipment at a city hospital is no longer used because new technology exists that does a better job.
• B) A bridge is damaged by an earthquake.
• C) An expansion project at the city airport is halted because a major airline stops service to the city.
• D) All of the above.

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Definitions:

Primary Factors

The main or most important elements or conditions that contribute to a certain result or situation.

Mechanistic Organizations

Highly structured and formal organizations with clear hierarchies, roles, and rigid procedures, often seen in stable environments.

Organic Organizations

Describes organizations that are flexible, adaptable, and emphasize horizontal communication; they typically thrive in dynamic environments.

Impersonality

The quality of being devoid of personal feelings or characteristics, often leading to a detached or formal atmosphere.