Corporate Restructuring Strategies

question 73

Multiple Choice

Corporate restructuring strategies:

• A) involve making major changes in a diversified company's business lineup,divesting some businesses and/or acquiring others,so as to put a whole new face on the company's business lineup.
• B) entail reducing the scope of diversification to a smaller number of businesses.
• C) entail selling off marginal businesses to free up resources for redeployment to the remaining businesses.
• D) focus on crafting initiatives to restore a diversified company's money-losing businesses to profitability.
• E) focus on broadening the scope of diversification to include a larger number of businesses and boost the company's growth and profitability.

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Definitions:

Profit

The difference between total revenue and total cost.

Rent

Payment made by a tenant to a landlord for the use of a property, room, or apartment for a specified period.

Monopoly Profits

Extraordinary profits earned by a monopoly due to its unique position of having no competition, allowing for higher prices and lower production.

Miracle Drug

A term for a medication that has an unexpectedly profound and beneficial effect on patients.