Divesting of Businesses Can Accomplish Many Different Objectives,except

question 17

Multiple Choice

Divesting of businesses can accomplish many different objectives,except

• A) enabling managers to focus their efforts more directly on the core businesses of the firm.
• B) providing the firm with more resources to spend on more attractive alternatives.
• C) raising cash to help fund existing businesses.
• D) dispersing manager focus.

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Definitions:

Initial Margin

The minimum amount of equity required to enter into a leveraged position or futures contract to cover potential losses.

Margin Loan

A loan given by a broker to an investor to purchase securities, where the securities act as collateral for the loan.

Round Lots

Standardized number of units of a financial instrument, usually 100 shares for stocks.

Per Share

A financial metric that represents some quantity divided by the total number of outstanding shares of a company, often used in financial ratios.