One Action That an Organization May Take with Respect to an SBU

question 110

Multiple Choice

One action that an organization may take with respect to an SBU classified as a dog is to sell it.It seems odd that one organization would want to buy another's dog.Which of the following might explain such a purchase?

• A)A need to generate large amounts of short-run cash
• B)A desire to expand into a rapidly growing market
• C)Possible synergistic effects on the buying organization
• D)A decision to adopt a retrenchment strategy
• E)A desire to complete a hostile takeover of the seller