Which of the Following Companies Is Using a Divesting Strategy

question 19

Multiple Choice

Which of the following companies is using a divesting strategy?

• A)Juggernaut Bikes aims to maintain its market share, but does not have the resources to increase its share.
• B)Noting the potential for growing its market share, LBD Inc. steps up investments in advertising and promotion.
• C)When sales of its clothing division decline, Blackstone's sells off the division to a competitor.
• D)Getix Computers is increasing the price of its products in order to maximize its short-term profits.
• E)Harlow's market share remains steady over two years even though the company does not increase investment in the product in that time.

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Definitions:

Internal Control

Processes and procedures implemented by management and the board to ensure the integrity of financial reports, compliance with laws and regulations, and the efficiency of operations.

Physical Custody

Refers to the actual, physical possession and care of a child, typically used in legal contexts concerning child custody arrangements.

Accounting Records

Documents and books that systematically record financial transactions of a business for accounting and audit purposes.

Outstanding Checks

Checks issued by a company that have not yet been cashed or cleared by the bank.