The Timing of a Divestiture Is Important

question 55

True/False

The timing of a divestiture is important.If the business to be sold is highly cyclical,the sale should be timed to coincide with the firm's peak year earnings.

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Definitions:

Scarcity

A basic economic problem arising from the situation in which finite resources are insufficient to satisfy all human wants and needs.

Scarcity

A condition where resources are limited compared to the demands or needs, leading to competition and value appreciation.

Pique Technique

A psychological strategy to capture people's interest by making a request in an unusual manner, thereby increasing the likelihood of compliance.

Social Influence

The effect of others on an individual's thoughts, feelings, and behaviors.