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grin007 [14]
3 years ago
10

Lito works for a business that is part of a large corporation with many diverse business lines that operate autonomously. Lito’s

group designs and manufactures playground equipment, but the corporation also owns asphalt paving companies, a producer of modular housing, a small amusement park, and a real estate firm. Given this, it seems likely that the parent corporation that owns this diverse portfolio of businesses uses a ______ structure.
Business
1 answer:
irinina [24]3 years ago
4 0

Answer: Conglomerate structure

                           

Explanation: In simple words, conglomerate structure refers to the structure under which many entities operate in different industries under a single corporation. In other words, it is a different name for parent subsidiary relationship.

In the given case, Lito group owns different firms in different industries. Hence from the above we can conclude that the group uses conglomerate structure.

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Grainger Company is a major automotive parts manufacturer operating in six countries. It has no restrictions on stock sales and
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The correct word for the blank space is: public.

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A public corporation has sold stock through an<em> Initial Public Offering </em>(IPO) to the public and that stock is currently traded on a <em>public stock exchange</em> or the <em>Over-The-Counter</em> (OTC) market. The ability to sell public shares is very important to these businesses as it provides them with a source of capital for investment.

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B. Accounts Receivable

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Unlike direct materials, the sum of all the direct labor variances is always equal to the flexible budget variance.
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Answer:

A. True

Explanation:

Unlike direct materials, the sum of all the direct labor variances is always equal to the flexible budget variance. Also, a negative direct labor efficiency variance is considered favorable one. And for a direct labor, if the efficiency and rate variances are both negative, then the flexible budget variance will be unfavorable. Therefore, the statement of the question is true.

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Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions: Consumer and Commercial. Both divis
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Consumer    EVA 7, 133.00

Commercial EVA 7,090.50

<u>Both are profitable</u>

<u />

Explanation:

The EVA (economic value added) is the result from subtracting the cost of capital of the investment to their divisional income. This will determinate if the division increase the company's capital or destroyed (as it return less than optimal/desired)

Consumer Income                     11,500

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Both division are profitable as they generate more income than the cost of the investment

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