What Will Most Likely Occur If a Company Eliminates an Unprofitable

question 199

Multiple Choice

What will most likely occur if a company eliminates an unprofitable segment when a portion of fixed costs are unavoidable?

• A) All expenses of the eliminated segment will be eliminated.
• B) Net income will decrease.
• C) Net income will increase.
• D) The company's variable costs will increase.

---

Definitions:

Strategic Planning Team

A group of individuals within an organization responsible for developing strategies to achieve long-term objectives and goals.

Opportunity

A set of circumstances that makes it possible to do something or for something to happen; often linked with potential for success or advancement.

Strength

The ability of an individual or object to withstand force or pressure without breaking or giving way.

Finance Applications

Software tools or platforms designed to manage, track, or analyze financial transactions and processes.