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.

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Definitions:

Raymond Cattell

A psychologist known for his research into personality, factor analysis, and the development of several personality assessments.

Carl Rogers

An influential American psychologist who founded client-centered therapy and contributed significantly to humanistic psychology.

Henry Murray

An American psychologist who developed a theory of personality based on needs and motivations, co-developing the Thematic Apperception Test (TAT).

Source Traits

Stable and permanent traits that are the basic factors of personality, derived by the method of factor analysis.