In a Decision to Eliminate a Segment,remaining Segments Must Have

question 88

True/False

In a decision to eliminate a segment,remaining segments must have sufficient contribution margin to cover their own direct costs and the common costs.

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Definitions:

Post-money Valuation

The estimated value of a company after external financing and injections of equity have been added to its balance sheet.

Angel

A wealthy person who funds a new business, typically in return for convertible debt or a share in the company's equity.

Pre-money Valuation

The value of a company as estimated before the injection of new capital or investments.

Post-money Valuation

Refers to a company's valuation after external financing and/or capital injections are added to its balance sheet.