A Product-Market Segment Is "Operational" If It Is Big Enough

question 246

True/False

A product-market segment is "operational" if it is big enough to be profitable to the firm.

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Definitions:

Asset-backed Securities

Financial securities collateralized by a pool of assets, such as loans, leases, credit card debt, royalties, or receivables.

Special Purpose Vehicle

A subsidiary company created to isolate financial risk, often utilized in securing assets and securitization transactions.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of shares of the corporation's stock at the bondholder's option.

Call Provision

A feature in certain contracts allowing the issuer the right to redeem or pay off the contract before its maturity date, usually bonds.