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:

Political Corruption

Involves the misuse of public power for private benefit, typically through bribery or embezzlement.

Government Officials

Individuals who hold positions of authority in government institutions and are responsible for making and enforcing rules and laws.

Pork Barrel

Government spending for localized projects secured primarily to bring money to a representative's district, often criticized as wasteful and politically motivated.

Government Loan Subsidies

Financial support from the government that reduces the cost of borrowing for certain individuals, businesses, or sectors.