A Unit That Is Separate from the Mainstream of the Organization

question 139

True/False

A unit that is separate from the mainstream of the organization and is responsible for developing and initiating innovations is called a new-venture team.

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Definitions:

Initial Cost

The original expense incurred to acquire an asset or start a project, including purchase price and any other initial expenses.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, representing the loss of value over time.

Residual Value

The estimated amount that an asset will realize upon its sale at the end of its useful life.

Straight-Line Depreciation

A method of accounting in which an asset's cost is evenly distributed over its useful life to represent its consumption.