Management of a business enterprise has the responsibility for identifying the operating segments of the enterprise.

Question

Quizplus · Accepted Answer

Management is responsible for identifying the operating segments of a business enterprise as they have the best understanding of the internal operations, organizational structure, and financial information, which are essential for determining segments based on criteria like the nature of the business activities, the presence of different revenue streams, and the management and internal reporting structure.

Management of a Business Enterprise Has the Responsibility for Identifying