In Deciding on the Future Status of an Unprofitable Segment

question 101

True/False

In deciding on the future status of an unprofitable segment management should recognize that net income could decrease by eliminating the unprofitable segment.

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Definitions:

Voidable

Voidable refers to a legal contract or transaction that is valid and enforceable on the surface but may be declared void by one of the parties due to certain defects or conditions.

Overturned

Refers to a decision, typically in a legal context, that has been reversed or nullified by a higher authority or court.

Illegal Subject Matter

Refers to contracts that have an object which is against the law or public policy and hence unenforceable.

Age Of Majority

The legally defined age at which a person is considered an adult and capable of making certain legal decisions independently.