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One of the major reasons for not providing segment information is that competitors will then be able to determine the profitable segments and enter that
One of the major reasons for not providing segment information is that competitors will then be able to determine the profitable segments and enter that product line themselves. If this occurs and the other company is successful, then the present stockholders of Chang Lee Inc. may suffer. This question should illustrate to the student that the answers are not always black and white. Disclosure of segments undoubtedly provides some needed information, but some disclosures are confidential.
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