In Determining If Two Operating Segments May Be Combined into One

question 31

Multiple Choice

In determining if two operating segments may be combined into one, which of the following factors should be considered?

• A)​similarities regarding profit margins
• B)​whether the nature of the products and services is similar
• C)​whether there is a similar amount of intracompany sales
• D)whether there is a similar number of employees​

---

Definitions:

Rebranding

The process of changing a company's corporate image, identity, or strategy, often through modifying names, logos, marketing strategies, and other visual communication to create a new perception among consumers and stakeholders.

Food and Drug Administration

The federal agency responsible for protecting public health by regulating food safety, pharmaceuticals, medical devices, and cosmetics.

Federal Trade Commission

A government body tasked with regulating business practices to prevent anti-competitive, deceptive, and unfair business operations in the U.S.

Package Labels

Information attached to a product's packaging, providing details such as ingredients, manufacturing info, and usage instructions.