Companies That Have Limited Customers with Similar Needs and Tastes

question 115

True/False

Companies that have limited customers with similar needs and tastes must develop client structures to organize their business.

---

Definitions:

Operating Income

The profit realized from a business's core operations, calculated by subtracting operating expenses from gross income.

Extraordinary Gain

Unusual and infrequent gains that are outside the normal operations of a business, such as profits from selling a piece of land at a significantly higher price than its book value.

Component-Disposition Gains

Profits realized from the disposal of a component or part of an asset, often a segment of a larger asset that is sold separately.

Discontinued Operations

Components of a business that have been disposed of or are held for sale and are not part of the company’s future operations.