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:

Titular Head

A person holding a title and often a ceremonial position of leadership but lacking real power or authority.

Black Middle Class

African American individuals and families that fall within the middle-income range, experiencing economic stability and upward mobility, particularly visible post-Great Migration.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, leading to widespread unemployment and poverty.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to provide relief, recovery, and reform from the Great Depression.