When a Firm Divests Itself of an Unrelated Business to Focus

question 10

Multiple Choice

When a firm divests itself of an unrelated business to focus on it core competency, the firm is

• A)using economies of scope to cut costs.
• B)downsizing.
• C)outsourcing.
• D)market sharing.

Identify the funding sources and economic motivations behind early English settlements.

Grasp the religious dynamics and tensions in late-sixteenth-century England, including impacts on colonization.

Comprehend the colonization strategies used by England in North America and their precedents.

Understand the unique challenges and stories of early colonies such as Roanoke.

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Definitions:

Allowance for Doubtful Accounts

An estimation of accounts receivable that a company does not expect to collect, appearing as a contra-asset account on the balance sheet.

Net Credit Sales

The net income generated from credit sales after subtracting any returns or allowances.

Aging Analysis

A method used to estimate the collectability of accounts receivable by categorizing receivables by their age (time outstanding).

Uncollectible Accounts Expense

An expense account reflecting the cost of accounts receivable that a company does not expect to collect.