Which Strategy Would Be Effective When the Stockholders of a Firm

question 54

Multiple Choice

Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets.

• A) integration
• B) differentiation
• C) diversification
• D) cost leadership
• E) liquidation

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Definitions:

Pledge of Inventory

The use of a company's inventory as collateral to secure a loan or meet other financial obligations.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to raise immediate capital.

Turning Receivables

Involves managing and collecting funds owed to a business by its customers within a given period.

Credit Profile

A summary or analysis of an individual's or entity's credit history and current financial status used by lenders to gauge creditworthiness.