When a company is showing a net loss, it is always best to discontinue the segment in order not to continue with losses.

Question

Quizplus · Accepted Answer

Discontinuing a segment may not always be the best option, as there could be underlying factors causing the net loss, such as a temporary downturn in the market or investments in new products or services. Instead, the company may choose to implement cost-cutting measures or restructure the segment to improve profitability. Additionally, discontinuing a segment could result in a loss of potential future profits and market share.

When a Company Is Showing a Net Loss, It Is