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Homework answers / question archive / When a company decides to divest a segment, the underlying reason for this decision could be any one of the following except a

When a company decides to divest a segment, the underlying reason for this decision could be any one of the following except a

Economics

When a company decides to divest a segment, the underlying reason for this decision could be any one of the following except

a. The segment is a chronic loser and the company is unwilling to commit the resources to make it profitable

b. Another company is willing to pay a higher price for the segment than its present value to the current owner

c. As a result of a change in the company's long-range strategy, what was once a good fit is no longer a good fit

d. The realization of economies of scale where average cost declines as volume increases

Option 1

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