The Absolute Profitability of a Segment Is Measured by Subtracting

question 50

True/False

The absolute profitability of a segment is measured by subtracting the segment's avoidable costs from its revenues.

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Definitions:

Discharged

Relieved from a legal duty, obligation, or liability, often in the context of debts or contractual obligations.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, resulting in the assets being used to pay creditors.

Sole Proprietorship

A sole proprietorship is a type of business entity operated and owned by one person who bears complete responsibility for the company's operations and financial obligations.

Crowdfunding

A process where small sums of money are gathered from many people to support a project or enterprise, usually through internet channels.