Final answer:
Corporate headquarters are usually not considered an operating segment because they do not generate revenue directly or operate as a distinct business unit. Pension plans are typically related to financing, not operating activities, and therefore also not considered operating segments.
Step-by-step explanation:
The statement that corporate headquarters is considered an operating segment is generally false. An operating segment is a component of a business that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company's chief operating decision-maker, and for which discrete financial information is available. Corporate headquarters usually provides overarching management and does not generate revenues directly from external customers, nor does it operate as a distinct segment of the business. However, the specific determination can vary based on the internal organizational structure of the company.
As for pension plans, these are typically considered to be associated with the financing and investment activities of an entity rather than its operating activities. Consequently, pension plans are not operating segments as they do not generate revenues or incur expenses from the primary business activities.
Answer: B. False