Question

In April of 2004, as Peter Flores prepared for a meeting with Cynthia Wu, the manager of Salem Data Services, he was pleased with the positive contributions that Data Services had made to the Net Income and other financial metrics of Salem Telephone for the previous year ended December 31, 2003. True/ False?

Answer 1

False

Step-by-step explanation:

Due to regulatory issues, Salem Data Services was established as a separate entity from Salem Telephone. Salem Telephone decided to start Salem Data Services in order to find additional sources of revenue and profits. Because of its relationship with Salem Telephone, Salem Data Services was able to avoid many costs an independent company would have had