Corporate Restructuring Can Be a Result of More Institutional Ownership

question 115

Multiple Choice

Corporate restructuring can be a result of more institutional ownership. Restructuring can cause

• A) changes in the amount of assets versus the amount of liabilities of the firm.
• B) the sale of low-profit margin divisions.
• C) the removal of current management and/or large reductions in the workforce.
• D) All of the options

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Definitions:

Rational Choice Theory

An economic principle that assumes individuals always make prudent and logical decisions that provide them with the highest personal utility.

Exchange

In sociology, the act of giving one thing and receiving another between two parties, often analyzed within social, economic, or cultural contexts.

Altruism

The principle or practice of showing concern for the welfare of others, often at a cost to oneself, motivated by selfless concerns.

Social Interactions

The process by which individuals act and react in relation to others, forming the basis of society.