Suppose That One of Disney's Business Units Is a Chain

question 42

Multiple Choice

Suppose that one of Disney's business units is a chain of sound studios. The studios have low profit potential, and the chain commands a relatively small share of the market. On these grounds, Disney is considering whether to sell the chain. Which of the following, if True, would MOST strongly suggest that Disney should keep the chain instead?

• A) The chain has reduced its operating loss in each of the last three years.
• B) The chain has penetrated the market in coastal areas but not inland areas.
• C) Other Disney companies use the chain's studios for a wide variety of projects, resulting in significant cost savings for Disney.
• D) The chain uses the most up-to-date technology in its sound studios.
• E) The chain staffing levels are comparable to those of similar companies in the industry.

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