Question

In: Accounting

Some people argue that providing segment leads to a competitive disadvantage for firms that are operating...

Some people argue that providing segment leads to a competitive disadvantage for firms that are operating successfully. Evaluate this argument

Solutions

Expert Solution

Segment Reporting in respect of the segments that are operating successfully is not providing competitive disadvantages for firms, because with these segment reporting identification of segments , its Asset , liability etc will help various stakeholders the way of generating the operating cash flows from the particular segment. It helps to understand the major segment contributing the entity as a whole. However, as already stated operating successfully, It emphasis very minutely over the particular segment only. Crystalize the picture of particular segment and top and bottom line of the particular segment.

From above it cannot be concluded that it is disadvantages for segment reporting although it mirrored the capital outlay requirement and churn out the operating cash flows from the particular business. The easily determinable over the terms of contribution on Overall Top Line and Bottom Line by particular segment. Hence, it is beneficial in all terms and provide eye opener report for both management and Stakeholders (Decision maker).

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

If mergers and acquisitions quite often end up providing a competitive disadvantage, why do so many...
If mergers and acquisitions quite often end up providing a competitive disadvantage, why do so many of them take place?
Some people argue that the official unemployment rate understates true unemployment, while others argue that it...
Some people argue that the official unemployment rate understates true unemployment, while others argue that it could actually overstate true unemployment in cases. Explain each of these positions, giving some examples of what might cause the official rate to be either too high or too low. Do you think we should make any changes to how we calculate unemployment? If so, what would you propose?
Some argue against corporate involvement in socially responsible behavior because the costs incurred by such behavior place the organization at a disadvantage in a competitive market. Discuss the merits and flaws of this argument.
Some argue against corporate involvement in socially responsible behavior because the costs incurred by such behavior place the organization at a disadvantage in a competitive market. Discuss the merits and flaws of this argument. 
Suppose firms in a competitive labor market are required to start providing a mandated benefit that...
Suppose firms in a competitive labor market are required to start providing a mandated benefit that costs $C per unit of employment. The value of the benefit to workers is greater than the cost to firms ($B>$C). a. Draw a graph showing the initial equilibrium (no mandated benefit), the new equilibrium, the cost per unit of employment firms face at the new equilibrium, and the value of the workers’ compensation at the new equilibrium. b. Is there a deadweight loss...
1) Demand for medical care and moral hazard: Some argue that providing full insurance for routine...
1) Demand for medical care and moral hazard: Some argue that providing full insurance for routine mental health care will not significantly enhance social welfare and will lead to large social loss from moral hazard. a) Using a graph and a few sentences, explain why providing full insurance for routine mental health care may lead to large social loss from moral hazard. Would you make the same argument for emergency mental health care? Explain in 1-2 sentences and show on...
Some people argue that the reason financial markets follow a chaotic pattern is because of the...
Some people argue that the reason financial markets follow a chaotic pattern is because of the psychology of traders. Discuss the following statement from Warren Buffett, who actually borrowed the quote from Benjamin Graham: "The market behaves as if it were a fellow named Mr. Market, a man with incurable emotional problems. At times, he feels euphoric and can see only the favorable factors. At other times, he is depressed and can see nothing but trouble ahead for both the...
Some people will argue that running a business is just a series of one decision after...
Some people will argue that running a business is just a series of one decision after another. If this is the case, you could argue that the success of a business is based on the quality of its decisions. But is that really the case? Think back to your experience in a business or personal setting and consider an example of where a bad decision created a bad outcome as well as an example of where a bad decision did...
Some people argue that everyone is ultimately an ethical egoist. What do they mean by this?...
Some people argue that everyone is ultimately an ethical egoist. What do they mean by this? Do you agree? Would this prove that egoism is the basis for all ethics??
Some suggest that foreign markets are graveyards for entrepreneurial firms that overextend themselves. Others argue that...
Some suggest that foreign markets are graveyards for entrepreneurial firms that overextend themselves. Others argue that foreign markets represent the future for SMEs (small and medium enterprises). Questions (copy the questions before providing quality discussions, not just a simple answer): 1. If you were the owner of a small, reasonably profitable firm, would you consider expanding overseas? Why or why not? 2. What are the key issues here? 3. What are the experiences and lessons that you have got from...
Some suggest that foreign markets are graveyards for entrepreneurial firms to overextend themselves. Others argue that...
Some suggest that foreign markets are graveyards for entrepreneurial firms to overextend themselves. Others argue that foreign markets represent the future for SMEs. If you were the owner of a small, reasonably profitable firm, would you consider expanding overseas? Why or why not?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT