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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. 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
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