List Three Questions Managers Should Consider When Deciding Whether to Drop

question 138

Essay

List three questions managers should consider when deciding whether to drop a product or a business segment.

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Depreciation Expense

A measure of the reduction in value of an asset over time, often used for tax and accounting purposes.

Net Cash Flow

The difference between a company's cash inflows and outflows over a period of time.

Taxable Income

Taxable income is the portion of an individual's or corporation's income used to determine how much tax they owe to the government in a specific period.