Which One of These Is the Least Probable Reason Why

question 58

Multiple Choice

Which one of these is the least probable reason why a firm may want to divest itself of some of its assets?

• A) To cash out a profitable operation
• B) To raise cash
• C) To improve the strategic fit of its various divisions
• D) To comply with antitrust regulations
• E) To increase market share

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Definitions:

Laspeyres Price Index

An economic measure that calculates the change in the cost of acquiring a fixed basket of goods and services, based on the prices of those goods and services in a base period.

Laspeyres Price Index

An economic index that calculates the change in the price level of a basket of goods and services based on the prices and quantities consumed in a base period.

Consumptions

The process of using goods and services to satisfy wants or needs, often measured as an important component of economic activity.

Base Year

A base year is a specific year against which economic growth is measured, often used as a reference point for the calculation of index numbers.