A Firm May Want to Divest Itself of Some of Its

question 44

Multiple Choice

A firm may want to divest itself of some of its assets for all the following reasons except to:

• A)raise cash.
• B)eliminate unprofitable operations.
• C)eliminate some recently acquired assets.
• D)cash in on profitable operations.
• E)eliminate some synergy.

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Definitions:

Interest Income

Earnings received from deposit accounts or investments such as bonds, loans where one lends money to someone else in exchange for a return of interest.

Currency Notes

Paper money issued by a country's central bank or government as legal tender for transactions.

Money Demand Curve

A graph showing the relationship between the quantity of money demanded and the interest rate.

Nominal Interest Rate

The interest rate before adjustments for inflation, representing the face value of money borrowed or saved.