W.8 TA2 Long-Lived Assets2

What is the main reason for the company's restructuring?

• To increase employee salaries

• To reduce marketing costs

• To expedite production

• To expand franchise locations

What does the term 'impairment of long-lived assets' refer to?

• Increase in asset value

• Acquisition of new assets

• Decrease in asset value

• Sale of assets

What strategy did the CEO suggest to regain capital?

• Investing in new technology

• Closing franchise locations

• Hiring more staff

• Increasing production rates

What is 'derecognition of Property, Plant, and Equipment'?

• Acquiring new equipment

• Selling off unprofitable assets

• Upgrading existing facilities

• Increasing property taxes

What did the CFO plan to check regarding patents?

• If they are being copied by competitors

• If they are outdated

• If they can be sold

• If they are still valid

What did the CEO suggest doing with competition?

• Collaborating on new products

• Selling them some locations

• Increasing marketing efforts

• Reducing prices

What is the purpose of drafting disclosure papers?

• To recruit new employees

• To advertise new products

• To inform investors about changes

• To increase stock prices

What type of assets are discussed in the dialogue?

• Long-lived assets

• Intangible assets

• Financial assets

• Current assets

What does 'subsequent capital expenditures' refer to?

• Investments made after initial capital

• Costs associated with employee training

• Expenses related to marketing

• Savings from operational efficiencies

What is a potential outcome of selling franchise locations?

• Higher operational costs

• Regaining capital

• Loss of brand identity

• Increased competition