Brighton Corp

question 64

Multiple Choice

Brighton Corp.undertook a reengineering strategy recently to increase the efficiency of its processes.As a result,the HR department has revised the job and pay structures for employees.The firm is also hiring new employees with different skill sets.Which of the following arguments strengthens the HR department's decision?

• A) Reengineering demands the HR department hire another vendor or a third-party provider.
• B) Reengineering necessitates the HR department design and implement changes so employees will be committed to its success.
• C) Reengineering provides training only to those in top managerial positions.
• D) Reengineering involves one company buying another company.
• E) Reengineering results in consolidation within an industry, meaning that two firms in one industry join to hold a greater share of the industry.

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Definitions:

Deferred Taxes

Taxes that are incurred in one period but are not paid until a future period, often due to timing differences between accounting and tax reporting.

Taxable Entity

A business or individual that is required to pay taxes to a federal, state, or local government.

Permanent Difference

These are differences between taxable income and accounting income that originate in one period and do not reverse over time, affecting taxable income and tax liability.

Temporary Difference

A discrepancy between the tax base of an asset or liability and its carrying amount on the balance sheet that results in taxable or deductible amounts in future years.