Conditions That May Make Corporate Restructuring Strategies Appealing Include All

question 18

Multiple Choice

Conditions that may make corporate restructuring strategies appealing include all of the following EXCEPT

• A) ongoing declines in the market shares of one or more major business units that are falling prey to more market-savvy competitors.
• B) a business lineup that consists of too many slow-growth, declining, low-margin, or competitively weak businesses.
• C) an excessive debt burden with interest costs that eat deeply into profitability.
• D) ill-chosen acquisitions that haven't lived up to expectations.
• E) a business lineup that consists of too many cash cow businesses.

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Definitions:

Additive Strategy

An approach where elements are added together to solve problems or make decisions, often seen in mathematics or decision-making processes.

Anchoring

Overestimation of the importance of a factor by focusing on it to the exclusion of other relevant factors.

Framing

The way information is presented so as to emphasize either a potential gain or a potential loss as the outcome.

Representativeness Heuristic

is a cognitive shortcut where the likelihood of an object belonging to a category is assessed based on its similarity to a typical case from that category.