When Should a Business Not Be Divested

question 85

Multiple Choice

When should a business not be divested?

• A)when the business is worth more to another company than to the parent company
• B)when the business is a cash cow
• C)when the business provides valuable strategic or resource fits for another company
• D)when shareholders would be better served if the company sells the business for a generous premium
• E)when the business lacks the cross-boundary presence of shared values and cultural compatibility

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Definitions:

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.