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

Learn about the process of speech segmentation and its cognitive basis.

Understand the conceptual differences and practical implications of share repurchases and dividends.

Define and distinguish between dividends, distributions, and share repurchases.

Identify and explain the various types of dividends and their effects on a company’s financial statements.

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Definitions:

Real Cost

The total economic cost of production, considering all direct and indirect resources consumed, including opportunity costs.

Commodity Resources

Basic goods used in commerce that are interchangeable with other goods of the same type.

Fracking

A method of oil and gas extraction that involves injecting liquid at high pressure into subterranean rocks, boreholes, etc., to force open existing fissures and extract oil or gas.

U.S. Oil Supply

The total quantity of oil available for use or consumption in the United States, coming from domestic production and imports.