Potential Costs of Providing Segment Information Include

question 66

Multiple Choice

Potential costs of providing segment information include:

• A) management taking extra risks in order to attempt to generate increased returns in its segment.
• B) allowing current or potential investors to identify that the entity is earning high profits in a segment.
• C) disclosing that a segment is making a loss, which may lead to take-over bids by other organisations.
• D) allowing current or potential competitors to identify that the entity is earning high profits in a segment, which may increase competition through new entrants or an attempt to replicate the factors leading to the entity's success.

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Definitions:

Defense Attorney

A lawyer specializing in the defense of individuals and companies charged with criminal activity, working to protect their clients' rights and ensure a fair trial.

Grand Jury

A legal body authorized to conduct official proceedings to investigate potential criminal conduct and to determine whether criminal charges should be brought.

Indictment

A formal charge or accusation of a serious crime, issued by a grand jury based on presented evidence.

Information

A formal criminal charge made by a prosecutor without a grand jury indictment.