When Defining a Reportable Segment, Which of the Following Conditions

question 56

Multiple Choice

When defining a reportable segment, which of the following conditions would be sufficient to allow a company to combine two operating segments for purposes of testing?

• A) The products sold by each segment are produced in the same plant.
• B) Both segments have several customers in common.
• C) The segments may sell different products, but they have a similar economic environment and similar business activities.
• D) Both segments are required to adhere to U.S. Department of Labor regulations regarding immigration laws.
• E) Both segments are owned by the same parent company.

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Definitions:

Joint Probability Distribution

A statistical measure that calculates the likelihood of two events happening at the same time.

Mobile Phone Store

A retail shop that specializes in selling mobile phones and related accessories.

Joint Probability Distribution

Describes the probability of two or more events occurring at the same time and the relationship between them.

Probability Distribution

A mathematical description of outcomes in a statistical experiment, detailing how probabilities are distributed across the various possible outcomes.