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.

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Definitions:

Forward Contract

A non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed upon today.

Settlement Date

The date on which a trade or transaction must be finalized with the transfer of the asset and payment completed.

Risk Of Default

The possibility or likelihood that a borrower will not be able to meet debt obligations, leading to financial losses for the lender.

Futures Contracts

Financial contracts obligating the buyer to purchase an asset (like a commodity or financial instrument) and the seller to sell the asset at a predetermined future date and price.