Potential Costs of Providing Segment Information Include

Multiple Choice

Potential costs of providing segment information include:

A) management taking extra risks in order to attempt to generate increased returns in its segment.
B) allowing current or potential investors to identify that the entity is earning high profits in a segment.
C) disclosing that a segment is making a loss, which may lead to take-over bids by other organisations.
D) allowing current or potential competitors to identify that the entity is earning high profits in a segment, which may increase competition through new entrants or an attempt to replicate the factors leading to the entity's success.