Unlikely Candidates for Divestiture in a Corporate Restructuring Effort Are

question 23

Multiple Choice

Unlikely candidates for divestiture in a corporate restructuring effort are

• A)business units that lack strategic fit with the businesses to be retained
• B)weak performers
• C)businesses in unattractive industries
• D)businesses that are cash hogs or that lack other types of resource fit
• E)businesses compatible with the company's revised diversification strategy

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Definitions:

Wait Staff

Employees who serve customers in establishments like restaurants, often receiving wages plus tips.

Direct Expense

Costs that can be directly attributed to the production of goods or provision of services, such as materials and labor.

Wages

Payments made to employees for their labor or services, typically on an hourly, daily, or per-task basis.

Manager

An individual responsible for directing and overseeing the work of a group of people in an organization.