Which of the Following Are Reasons Why a Firm May

question 55

Multiple Choice

Which of the following are reasons why a firm may want to divest itself of some of its assets?
I.to raise cash
II.to unload unprofitable operations
III.to improve the strategic fit of a firm's various divisions
IV.to comply with antitrust regulations

• A)I and II only
• B)I, II, and III only
• C)I, III, and IV only
• D)II, III, and IV only
• E)I, II, III, and IV

Understand the difference between multiple-step and single-step income statements.

Identify and classify different types of expenses and losses.

Understand the composition and calculation of net income.

Recognize how inventory is classified in financial statements.

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Definitions:

Manipulate

To control or influence something or someone, often in a skillful manner and sometimes with the intent to deceive.

Organizational Politics

The activities and actions of individuals or groups within an organization aimed at acquiring and using power and other resources to obtain one's preferred outcomes.

Legitimate Power

The authority granted to an individual by an organization, recognized and accepted by members for influencing behavior.

Organization

A structured group of individuals working together towards common goals, often within a formal hierarchy.