A Segment of a Business Probably Should Be Discontinued If

question 49

Essay

A segment of a business probably should be discontinued if it cannot produce a(n)___________________.

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Definitions:

Preemptive Right

A shareholder's right to maintain their proportional ownership in a company by purchasing additional shares before they are offered to the public.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership stake in a corporation.

Common Stock

Equity securities that represent ownership in a company, providing voting rights and a share in the company’s profits through dividends.

Preferred Stock

A type of stock that typically guarantees dividends and has priority over common stock in asset liquidation.