Which of the Following Is NOT a Good Candidate for Divestiture

question 4

Multiple Choice

Which of the following is NOT a good candidate for divestiture in a corporate restructuring effort?

• 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:

Secret Profit

Earnings or benefits gained by an individual, typically in a position of trust, without the knowledge or approval of those entitled to know about such gains.

Agency Relationship

The legal arrangement where one party, the agent, acts on behalf of another, the principal, within the scope of authority granted by the principal.

Principal Had Dealt

A legal principle indicating acts or decisions made by an agent are legally binding on the principle if the agent acts within their authority.

Agent's Functioning

The actions carried out by an agent on behalf of a principal in the course of their agency relationship.