Diversified public corporations, such as Berkshire Hathaway and Virgin Group, create value through management expertise by improving plans and budgets. This is an example of a related diversification strategy.
Answer the following statement true (T) or false (F)
False
One of the purposes of diversification is to reduce the risk that is inherent in the variability in revenues and profits of a firm over time. If a firm enters new products or markets that are affected differently by seasonal or economic cycles, its performance over time will be more stable. For example, a firm that manufactures lawn mowers may diversify into snow blowers in order to even out its annual sales.
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Which of the following accounts are normally reported as noncurrent liabilities on a classified balance sheet?
a. Notes payable due in 5 years and bonds payable b. Interest payable and mortgage payable c. Income taxes payable and salaries payable d. Capital stock and accounts payable
Which of the following will be listed in the operating section of the statement of cash flows that is prepared using the indirect method?
A) collections from customers B) payments to suppliers C) interest received D) increases/decreases in current liabilities
Profit margin is net income divided by net sales.
Answer the following statement true (T) or false (F)
Climate, topography, and natural resources refer to environmental scanning.
Answer the following statement true (T) or false (F)