Which of the Following Is the Main Reason for a Company

question 13

Multiple Choice

Which of the following is the main reason for a company to restructure?

• A) The stock market has valued the stock the stock of less-diversified companies.
• B) Innovations in strategic management have diminished the advantages of vertical integration or diversification.
• C) Fulfilling the need to exit industries to increase profitability split existing businesses into separate, independent companies.
• D) It is an attempt to boost returns to shareholders by splitting up a multibusiness company into separate, independent parts.
• E) Diversification has reduced profitability.

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Definitions:

Trailer Lock

A security device or mechanism designed to prevent the unauthorized detachment or theft of a trailer by locking it to the towing vehicle or immobilizing its wheels.

Severe Braking

A situation where brakes are applied forcefully and suddenly, often in an emergency, to reduce vehicle speed quickly.

Brake Fade

Caused by a number of factors mostly relating to reduction in the coefficient of friction of brake friction materials. Thermal expansion of brake drums under prolonged braking tends to enlarge drum diameters, meaning that the actuation mechanisms such as slack adjusters no longer function at optimum mechanical efficiency, which makes brake fade more of a problem in drum brake systems.

Safety Pop-Off Valves

Valves designed to release pressure automatically to prevent damage or explosions in pressurized systems.