Which Strategy Did Circuit City Use in 2008 When It

question 54

Multiple Choice

Which strategy did Circuit City use in 2008 when it converted its retail stores to cash?

• A) liquidation
• B) bankruptcy
• C) diversification
• D) divestment
• E) consolidation

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Definitions:

Stock Splits

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company does not change.

Reverse Split

A reverse split is a consolidation of a company's existing share into fewer, proportionally more valuable shares.

Administrative Problems

Challenges or obstacles that occur in the management, organization, or operation of a business or any institutional setup.

Tax Basis

The value of an asset for tax purposes, used to calculate depreciation, amortization, and gains or losses on the sale of the asset.