Which of the Following Statements Is True

question 187

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 file for bankruptcy.
• D)If the segment margin is negative,the operation should be dropped.

---

Definitions:

Reverse Stock Split

A corporate action that consolidates the number of existing shares of stock into fewer, proportionately more valuable, shares.

Total Equity

The sum of the ownership interest in a corporation, including common and preferred shares.

Stock Repurchase

The process by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares.

Cash Dividends

Payments made by a corporation to its shareholders out of its profits or reserves in the form of cash.