If Relevant Events Are _____,Diversification Will NOT Reduce Risk

question 40

Multiple Choice

If relevant events are _____,diversification will NOT reduce risk.

• A)positively correlated
• B)negatively correlated
• C)dependent
• D)independent

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Definitions:

Reportable Segment

A distinguishable business unit or segment of an organization for which separate financial information is available and regularly reviewed by the company's management.

Intersegment Sales

Intersegment sales refer to transactions where one segment of a company sells goods or services to another segment of the same company, affecting intra-company revenues but not consolidated revenues.

Capital Expenditures

Payments made by a company to acquire or significantly improve the capacity or capabilities of long-term assets.

Interest Revenue

Income earned by an entity from lending money or making investments that bear interest.