A bank is said to have ____ when its average costs decline when it offers a wider variety of products.
A. economies of scope.
B. economies of scale.
C. cost diminution.
D. decreasing returns to scale.
Answer: A
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Regarding accounting for troubled debt, which of the following statements is true?
a. The treatment for troubled debt is the same under both U.S. GAAP and IFRS. b. The settlement of troubled debt results in an economic loss to the debtor because the creditor accepts more than the book value of the debt to settle the debt. c. U.S. GAAP uses a "10 percent rule" to determine whether a gain is recognized by the debtor in a troubled debt situation. d. Because IFRS uses the present value approach to determine the magnitude of the settlement for troubled debt, the magnitude of the new book value of the restructured debt will be lower and the gain recognition will be larger under IFRS.
The _____ of a region or community is simply the major source of income for the area.
A. economic base B. trade area C. market D. municipality E. enterprise zone
MRP II systems were weakened because they were unable to interface with all of the following except?
a. A firm’s suppliers b. A firm’s customers c. Within a department d. A firm’s foreign units
A small family-run business may not have the resources to support a global sourcing strategy. This situation is an illustration of a(n) ______.
a. sourcing risk b. strategy risk c. market risk d. implementation risk