What Decision Rule Should Be Followed When Deciding If a Business

question 83

Multiple Choice

What decision rule should be followed when deciding if a business segment should be eliminated?

• A)Segments generating a net loss should always be eliminated.
• B)Segments with revenues that are more than avoidable expenses should be considered for elimination.
• C)Segments with revenues that are more than unavoidable expenses should be considered for elimination.
• D)Segments with revenues that are less than avoidable expenses should be considered for elimination.
• E)Segments with revenues that are less than unavoidable expenses should be considered for elimination.

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Definitions:

Sustainability Efforts

Initiatives and practices aimed at meeting current needs without compromising the ability of future generations to meet theirs, often focusing on environmental preservation.

Protecting the Environment

Actions and policies designed to preserve and improve the natural environment from degradation and pollution.

Strategy Map

A visual tool that delineates how an organization plans to achieve its strategic objectives, often highlighting specific goals, processes, and outcomes.

Measure Map

It is a visual tool used in process improvement to identify and display measures that are important for achieving an organization's strategic goals, though this term may be less commonly recognized in standard definitions.