Asset sales are:
I. Good news for investors in the selling firm
II. On average the assets are employed more productively after the sale
III. Transfer business units to the companies that can manage them more efficiently

Question

Quizplus · Accepted Answer

Asset sales can be beneficial for the selling firm as they may receive a cash influx and potentially improve their financial position (I). The assets are often employed more productively after the sale as they are transferred to firms that can utilize them more efficiently (II). This transfer allows business units to be managed by companies that have the expertise or resources to optimize their performance (III).

Asset Sales Are: I. Good News for Investors in the Selling Firm