Final answer:
In business, it is not always profitable to eliminate a segment that is not profitable. Companies should analyze the reasons for lack of profitability and consider potential strategies. The statement is false.
Step-by-step explanation:
In business, it is not always profitable to eliminate a segment that is not profitable. Sometimes, a segment may not be profitable in the short term but could become profitable in the long term. It is important for businesses to carefully analyze the reasons behind the lack of profitability and consider potential strategies to turn the segment profitable.
For example, a company may choose to invest in marketing and product development to improve the performance of a segment that is currently not profitable. Alternatively, a company may decide to eliminate a segment if it consistently incurs significant losses and if there are no feasible strategies to turn it around.
Hence, the statement that it is always profitable to eliminate a segment that is not profitable is False.