LOS q: Discuss the major reasons for divestitures.
Q1. Insofar as reasons for divestitures are concerned, when a firm divests of assets because of a desire to focus on its core business, this is most consistent with the rationale of:
A) individual parts being worth more than the whole.
B) a lack of profitability.
C) assets no longer fitting the long-term strategy.
Q2. Insofar as reasons for divestitures are concerned, when a firm divests of assets because of rising costs or a change in consumer tastes, this is most consistent with the rationale of:
A) assets no longer fitting the long-term strategy.
B) a lack of profitability.
C) individual parts are worth more than the whole.
Q3. Insofar as reasons for divestitures are concerned, when a firm divests of assets because of reverse synergies, this is most consistent with the rationale of:
A) individual parts being worth more than the whole.
B) a lack of profitability.
C) assets no longer fitting the long-term strategy.
|