Tyco International's Decision to Split into Three Separate Companies Was

question 25

Multiple Choice

Tyco International's decision to split into three separate companies was motivated by:

• A)The scandal involving its former CEO
• B)The belief that Tyco's businesses could achieve greater flexibility and growth as independent companies than as subsidiaries of Tyco
• C)The belief that the synergies among Tyco's businesses were outweighed by the costs of Tyco's corporate HQ
• D)The recognition that Tyco was subject to a "conglomerate discount."

---

Definitions:

Governmental Fund

A type of fund used by government entities to account for activities that are financed through tax revenue and other governmental resources, focusing on fiscal accountability.