Does the existence of conglomerates make financial performance evaluation easier or more difficult? Why?
Conglomerates, or diversified companies, often operate in many unrelated industries. In addition, the conglomerate will normally report only on a consolidated basis. As a result, the use of industry norms becomes difficult because there may not be another conglomerate made up of the same group of industries.
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Other (nonoperating) items follow operating expenses or the subtotal for operating profit. Most firms reporting under U.S. GAAP separately report financing costs, such as
a. principal payments. b. interest revenue. c. interest expense. d. principal receipts. e. none of the above
What is meant by proportionate consolidation, and what are its advantages?
What will be an ideal response?
The internal rate of return is the rate of return that yields a zero net present value.
Answer the following statement true (T) or false (F)
What are the two basic approaches to determining sample size?
a. required size per cell and the statistical model b. accountability and efficiency c. allowable error and level of confidence d. level of confidence and the theoretical practice