What is a strategic business unit (SBU)? Explain with an example.
What will be an ideal response?
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Business strategy occurs within strategic business units, or SBUs, the standalone divisions of a larger conglomerate, each with its own profit-and-loss responsibility. Companies can be organized on a geographic or a product basis to form SBUs. An example of a SBU would be the automobile division of a large conglomerate that also manufactures and sells pharmaceuticals, apparel, consumer electronics, and other such products.
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See the data for Lynx Corp If Lynx Corpuses the aging of accounts receivable approach to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?
a. $140,000 b. $156,000 c. $167,000 d. $184,000
Use _____________ and other devices to ensure that paragraphs are coherent
a. lists b. jargon c. key words d. editors
Potter Company acquired 75 percent ownership of Snape Corporation in 20X5, at underlying book value. On that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Snape Corporation. Potter purchased inventory from Snape for $150,000 on July 24, 20X6, and resold 90 percent of the inventory to unaffiliated companies on November 11, 20X6, for $160,000. Snape produced the inventory sold to Potter for $120,000. The companies had no other transactions during 20X6.Based on the information given above, what amount of cost of goods sold will be reported in the 20X6 consolidated income statement?
A. $90,000 B. $135,000 C. $108,000 D. $120,000
An agency that occurs when a principal and an agent do not expressly create an agency but is inferred from the conduct of the parties is known as a(n) ________
A) apparent agency B) agency by ratification C) implied agency D) agency coupled with an interest