What is an SBU? What criteria may be used to divide businesses into SBUs?
What will be an ideal response?
An SBU is composed of product lines with identifiable independence from other products or product lines in terms of competition, prices, substitutability of product, and impact of product withdrawal. A division or group may also be composed of different product lines, but it differs from an SBU in its thrust. It emphasizes short-term consequences, which are often transient, rather than shifts in the environment, which take place over a period of time. Further, a group or a division may easily gain so much independence that the chief executive officer and other corporate executives become observers, rather than shapers, of major strategic decisions.
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Identify the parties that are present when an estate is created and their key duties. Then do the same for a trust.
What will be an ideal response?
Pine Corporation makes adjusting entries monthly. As of March 31, the general ledger shows Prepaid Rent to have a debit balance of $6,000. Rent expires at a rate of $1,200 per month. No entry for rent has been recorded in the month of March. What adjusting entry is necessary at March 31?
A) Prepaid Rent 500Cash 500 B) Rent Expense 1,200Cash 1,200 C) Rent Expense 1,200Prepaid Rent 1,200 D) Prepaid Rent 6,000Rent Expense 6,000
A trade-in is a product that performs a similar function or achieves the same result as the original product.
Answer the following statement true (T) or false (F)
Currently, the Dow Jones Industrial Average is computed by _________.
A. adding the prices of 30 large "blue-chip" stocks and dividing by 30 B. calculating the total market value of the 30 firms in the index and dividing by 30 C. measuring the current total market value of the 30 stocks in the index relative to the total value on the previous day D. adding the prices of 30 large "blue-chip" stocks and dividing by a divisor adjusted for stock splits and large stock dividends