Why May Management Justifiably Hesitate to Close a Service

question 13

Multiple Choice

Why may management justifiably hesitate to close a service:

• A)because of emotional attachment to providing the service.
• B)because the loss made in providing one service can be compensated by the profit made by providing other services.
• C)because closing one service may lead to a decline in the demand of other services.
• D)All of the above

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Definitions:

Breakeven Analysis

A financial calculation to determine the number of products or services a company must sell to cover its costs.

Cumulative Dollar Value

The total monetary value of something accumulated over time.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Custom-Write

The process of writing content or software based on the specific requirements of a client or a project.