"A branch office or business segment that shows negative operating income should be shut down." Do you agree? Explain briefly.

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Part 1

A.

Yes. But when one branch or business segment shows a negative operating income, they should always shut down the bottom 10% of their branches or business segments, thereby leaving the most profitable sections with more business.

B.

Yes. If the branch or business segment shows negative operating income, it should be shut down without considering other factors. Shutting down will stop a drain on the company's resources.

C.

No. For example, if the revenues that will be lost exceed the costs that will be saved, the branch or business segment should not be shut down. Shutting down will only increase the loss.

D.

No. They should always offset the operating loss with the operating profit of the most profitable branch or business segment. This is done by transferring the funds to the section of the company that needs it the most.