Which of the Following Is Not a Rationale as to Why

question 301

Multiple Choice

Which of the following is not a rationale as to why a firm may want to divest itself of some of its assets?

• A) To raise cash.
• B) To get rid of unprofitable operations.
• C) To get rid of some assets received in an acquisition.
• D) To cash in on some profitable operations.
• E) To attain horizontal diversification.

---

Definitions:

Unfamiliar Situations

Circumstances or environments that are new or unknown to an individual.

Bowlby's Ethological Perspective

A theory in psychology that emphasizes the importance of attachment and bonding in the development of an individual, viewing behaviors through the lens of evolutionary necessity.

Discriminating Sociability

It refers to the selective approach individuals might take in their interactions, choosing to engage more with those who are perceived as similar or more rewarding in social contexts.

Reciprocal Relationships

Relationships in which both parties benefit mutually, often characterized by mutual respect and cooperation.