A Company Can ________ an SBU by Selling It or Phasing

question 8

Multiple Choice

A company can ________ an SBU by selling it or phasing it out and using the resources elsewhere.

• A) divest
• B) promote
• C) expand
• D) harvest
• E) hold

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Definitions:

Price Reduction

A decrease in the selling price of goods or services, often intended to stimulate demand or respond to competitive market pressures.

Price Elasticity

The measure of how responsive the quantity demanded or supplied of a good or service is to a change in its price.

Substitutes

Goods or services that can be used in place of each other, where the use of one increases the likelihood of the use of the other decreasing.

Price-Elastic

A characteristic of goods or services for which their demand or supply significantly changes with small changes in price.