In a Restructuring It Is Possible That Managers May Use

question 37

Multiple Choice

In a restructuring it is possible that managers may use the opportunity to write down assets that do not even relate directly to the restructuring action.Why might a manager decide to write down an asset that is not included in the restructuring action?

• A) The manager is practicing conservatism.
• B) The write down relieves future periods of depreciation expense, which increases cash flows.
• C) Normally the stock market reacts positively to restructuring and the greater the amount the better.
• D) The write down relieves future periods of depreciation expense, which increases earnings.

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Definitions:

Destructive Feedback

Feedback that is negative, unhelpful, and not constructive, potentially causing harm or discouragement.

Surface Listener

An individual who listens to someone speak without fully engaging with or understanding the depth of the conversation.

Ineffective Listener

An individual who struggles to fully comprehend, retain, or respond appropriately to information communicated by others.

Effective Listener

An individual skilled in fully focusing on what others are saying, understanding the information being presented, and responding thoughtfully.