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:

Schizophrenia

A complex psychiatric disorder characterized by delusions, hallucinations, disorganized thinking, and impaired social functioning.

Narcissistic Personality Disorder

A persistent psychological state that manifests as an inflated sense of one's own importance, a deep desire for undue admiration, and a noticeable deficiency in feeling empathy towards others.

Cognitive-Behavioral Theorists

Scholars or professionals who believe that psychological problems arise from faulty or irrational thinking processes, and that changing these thought patterns through therapy can alter behavior.

Avoidant Personality Disorder

A mental health disorder characterized by a long-standing pattern of avoidance of social interactions out of fear of rejection, inadequacy, and extreme sensitivity to negative evaluation.