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:

Net Pay

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been withheld.

Social Security Tax

A mandatory contribution paid by employees and employers to the government, intended to fund the Social Security program that provides benefits for retirees, disabled individuals, and survivors.

FUTA Tax

Federal Unemployment Tax Act tax, which is a payroll tax paid by employers to fund the government's unemployment insurance program.

SUTA Tax

The State Unemployment Tax Act tax, a payroll tax that employers pay to fund the state's unemployment insurance.