Who Pays the Costs of Creating a Sponsored ADR

question 23

Multiple Choice

Who pays the costs of creating a sponsored ADR?

• A) the foreign firm whose stocks underlie the ADR
• B) the U.S. bank creating the ADR
• C) both the U.S. bank and the foreign firm
• D) the SEC since they require the regulation

Calculate the threshold amounts for revenue, profit or loss, and assets to identify reportable segments.

Identify the components necessary for disaggregation in financial reporting.

Apply the 75% revenue test for determining reportable segments.

Understand the criteria for combining operating segments for reporting purposes.

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Definitions:

Organization's Purpose

The fundamental reason for an organization's existence, often reflected in its goals, mission, and the value it aims to provide to stakeholders.

Organization's Mission

A statement that outlines the purpose, goals, and values of an organization, guiding its strategic decisions and operations.

Unrelated Diversification

A corporate strategy where a company expands its business operations into markets or products that are not related to its existing business units.

Related Diversification

A strategic approach where a business expands into areas that are related to its existing operations to leverage synergies and existing capabilities.