Which of the Following Statements Is True

question 166

Multiple Choice

Which of the following statements is true?

• A)If the segment margin is negative, the segment should be retained.
• B)If the segment margin is negative, it should remain in operation until a better use can be found for its resources.
• C)If the segment margin is negative, it should be combined with another segment.
• D)If the segment margin is negative, the operation should be dropped.

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Definitions:

Early-stage Financing

Capital provided to startups and young companies to fund initial operations, product development, and market research, often in exchange for equity.

Entrepreneurs

Individuals who take the risk of starting and managing a business venture to capitalize on innovative ideas or products.

Business Concept

An idea for a business that includes basic information on the product, service, target market, and competition.

Startups

Newly established businesses, typically in the early stages of operation, often aimed at addressing a novel or untapped market need.