Which of the Following Is TRUE Regarding Restructuring

question 64

Multiple Choice

Which of the following is TRUE regarding restructuring?

• A)The two primary ways of restructuring are downsizing and upsizing.
• B)Restructuring (downsizing) is used more often by acquiring firms than by seller firms.
• C) Corporate restructuring is the primary tool for reducing firm size and scope.
• D) Restructuring is easier in knowledge-intensive firms than capital intensive firms.

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Definitions:

Diversify

The attempt to spread investment risk by selecting a variety of investment options within a portfolio.

Adage

A short, pointed and memorable saying that expresses a truth or insight.

Private Saving

The portion of an individual's or household's income that is not spent on consumption or taxes and is instead set aside for future use.

National Saving

The total amount of savings generated within a country, which equals the sum of private and public savings.