Which One of the Following Is Not a Rationale for Retaining

question 56

Multiple Choice

Which one of the following is not a rationale for retaining a cash hog business in a diversified company's portfolio?

• A)Capital infusions needed from the corporate parent are modest relative to the funds available.
• B)There is a decent chance of growing the business into a solid bottom-line contributor.
• C)The business is in an industry with low attractiveness and has a weak competitive position in that industry.
• D)There is a better than even chance that investing in the cash hog will result in it becoming a star business with a strong or market-leading competitive position in a high growth market and high levels of profitability.
• E)The cash hog has a valuable strategic fit with other business units.

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Definitions:

1795

A year notable for events such as the Treaty of Greenville, which ended the Northwest Indian War in the United States, and the establishment of the Batavian Republic in the Netherlands.

Indian Tribes

Indigenous peoples recognized in the United States with their own governments, customs, and territories.

Economic Independence

The state of having sufficient personal wealth to live, without needing to work actively for basic necessities. For nations, it refers to the ability to sustain its economy without undue reliance on external support or resources.

Self-Government

The right of people to rule themselves autonomously.