Accounting Online Program Certification Practice Test

Which divisions of Grant plc were closed based on the information given for the year to 30 April 20X9?

1. Maynard and Lytton

2. Hobhouse and Lytton

3. Maynard and Hobhouse

4. All divisions

The correct answer is: Maynard and Lytton

To determine which divisions of Grant plc were closed for the year ending 30 April 20X9, we need to focus on the information available about each division's performance and any other relevant financial indicators that suggest closure. The selection of Maynard and Lytton as the correct answer indicates that these were the specific divisions that faced closure based on their financial outcomes, operational performance, or strategic decisions made by the company during that fiscal year. It's crucial to analyze various factors such as profitability, operational efficiency, and the overall contribution to the company’s goals when deciding on closures. In this case, Maynard and Lytton likely exhibited underperformance or were not aligned with Grant plc's strategic vision, prompting the decision to close these divisions. The closures of divsions generally arise from consistent losses, poor market conditions specific to the operations within those divisions, or a shift in the company’s strategic focus. By closing these divisions, Grant plc would streamline operations and potentially reallocate resources more efficiently for the future. The other choices suggest combinations of divisions that did not align with the information indicating only Maynard and Lytton were closed. This leads to the conclusion that the rationale used in option A accurately reflects the decision-making process within Grant plc for that