Which of the Following Most Likely Would Be Considered a Discontinued

question 42

Multiple Choice

Which of the following most likely would be considered a discontinued operation?

• A)Production or marketing functions are shifted from one location to another.
• B)A sporting goods manufacturer has a bicycle division that meets FASB's definition of a component of the entity and decides to outsource the manufacture of its bicycles.
• C)The unprofitable brands of a beauty products component of an entity that manufactures and sells consumer products are discontinued.
• D)An entity that is a franchiser in the quick-service restaurant business also operates company-owned restaurants that are unprofitable in a certain region and, as a result, the entity decides to exit both the quick-service business as well as the company-owned restaurants in that region.
• E)None of these answer choices is correct.

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Definitions:

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A condition in the marketplace where businesses operate on a level playing field, with regulations in place to ensure no undue advantages exist.

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A United States executive branch department tasked with upholding the law and managing the justice system.

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A context or venue where goods and services are exchanged. In film, it can refer to both the physical and digital platforms where films are distributed and sold.

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A genre of films that depicts a male protagonist engaging in violent behavior, often as a form of revenge or rebellion.