What Decision Rule Should Be Followed When Deciding If a Business

question 83

Multiple Choice

What decision rule should be followed when deciding if a business segment should be eliminated?

• A)Segments generating a net loss should always be eliminated.
• B)Segments with revenues that are more than avoidable expenses should be considered for elimination.
• C)Segments with revenues that are more than unavoidable expenses should be considered for elimination.
• D)Segments with revenues that are less than avoidable expenses should be considered for elimination.
• E)Segments with revenues that are less than unavoidable expenses should be considered for elimination.

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Definitions:

Promotional Opportunity

A chance or scenario where an individual or entity can advance or benefit, often in a professional or marketing context.

Antitrust Violation

An antitrust violation occurs when business practices harm competition or result in monopolistic practices, going against laws designed to protect trade and commerce from unfair restraints.

Phony Assets

Assets that appear to have value but are actually worthless or significantly overvalued, often associated with fraudulent financial activities.

Blue-Collar Deviance

characterizes unlawful or unethical behaviors committed by individuals in manual labor occupations or industrial jobs.